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Which of the Following Statements Is TRUE

question 4

Multiple Choice

Which of the following statements is TRUE?
I. A free market minimizes the total costs of producing output
II.In a free market, P = MC1 = MC2 = . . . MCN
III. Every firm faces the same price in a competitive market.


Definitions:

Machines

Devices or systems that use mechanical power to perform specific tasks, often reducing human effort.

Marginal Revenue Product

The increased earnings obtained by utilizing an extra unit of a production resource or input.

Perfect Competitor

An ideal market condition where all sellers offer identical products, leading to equal market share and no price control.

Input

Resources used in the process of production, such as labor, materials, and capital.

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