What Is One Reason Why Would Corn Production, Which Takes

question 125

Multiple Choice

What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?

• A) because a perfectly competitive firm produces at the lowest possible long run average total cost
• B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost
• C) because a perfectly competitive firm is a price maker
• D) because the goal of a perfectly competitive firm is to profit maximize

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Definitions:

Account Category

A classification within accounting systems used to organize and report on financial transactions based on their nature.

Gross Sales

The total sales revenue of a company before any deductions for returns, allowances, or discounts.

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Sales Discounts

Concessions granted by sellers to buyers as an incentive to encourage prompt payment, recorded as a deduction from revenue.