Pure Competition Produces a Socially Optimal Allocation of Resources in the Long

question 193

Multiple Choice

Pure competition produces a socially optimal allocation of resources in the long run because

• A)marginal cost equals marginal revenue.
• B)marginal cost equals average total cost.
• C)marginal revenue equals price.
• D)marginal cost equals price.

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Definitions:

Cod Fishery

The industry or practice of catching cod fish, often subject to regulations due to overfishing concerns.

Federal Government

Refers to the national government, and the central authority overseeing an entire country, responsible for areas like national defense, foreign policy, and federal taxation.

Cod Fishery

The industry or practice of catching cod fish, often subject to regulations and quotas due to sustainability concerns.

Federal Government

The national government of a country, which holds the highest level of authority over its territories and functions.