A Perfectly Competitive Industry Is Said to Be Efficient Because

question 72

Multiple Choice

A perfectly competitive industry is said to be efficient because the:

• A) marginal cost of production of the last unit of output is minimized.
• B) product is standardized across firms in the industry.
• C) average total cost of production of the industry's output is minimized.
• D) market price of the good is equal to economic profit for all firms in the industry.

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Definitions:

Sense of Smell

Also known as olfaction, it is the ability to detect and identify airborne substances or odors through the olfactory system.

Equilibrium

A state of balance between opposing forces or actions, often used in contexts ranging from physics to economics.

Hearing

The sense through which sound is perceived, involving the detection of vibrations through the ear.

Taste

One of the five senses, it is the perception of flavor perceived in the mouth and throat on contact with a substance.