If a Purely Competitive Firm Is Producing Where Price Exceeds

question 64

Multiple Choice

If a purely competitive firm is producing where price exceeds marginal cost, then

• A)the firm will fail to maximize profit, but resources will be efficiently allocated.
• B)the firm will fail to maximize profit and resources will be overallocated to the product.
• C)the firm will fail to maximize profit and resources will be underallocated to the product.
• D)resources will be underallocated to the product, but the firm will maximize profit.

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Definitions:

Parallel Construction

The use of the same pattern of words to show that two or more ideas have the same level of importance.

Similar Structures

Architectural or organizational elements that share comparable features or organization.

Simple Sentence

A sentence structure consisting of a single independent clause that has a subject and a predicate.

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