When a Purely Competitive Firm Is in Long-Run Equilibrium, It

question 159

Multiple Choice

When a purely competitive firm is in long-run equilibrium, it is said to achieve allocative efficiency because

• A)total revenue is at a maximum.
• B)marginal cost equals marginal revenue.
• C)average cost equals marginal cost.
• D)average cost is at a minimum.

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Definitions:

Competitive Advantage

Competitive advantage is the attribute that allows an organization to outperform its competitors, stemming from unique resources, capabilities, or position.

Road Map

A detailed plan or strategy intended to achieve specific goals or objectives, often outlining key steps and milestones.

Effective Compensation

Compensation strategies that are fair, competitive, and aligned with the organization's goals, thereby motivating employees.

Compensation Mix

The combination of direct compensation (like salary and wages) and indirect compensation (such as benefits) that an employee receives.