Is It Possible for a Perfectly Competitive Firm to Be

question 116

Multiple Choice

Is it possible for a perfectly competitive firm to be maximizing profits, but not achieving resource allocative efficiency?

• A)Definitely yes, because it is impossible to achieve both at the same time.
• B)Yes, it is possible, but it is not possible to minimize losses without also achieving resource allocative efficiency.
• C)No, it is not possible, because the output at which MR = MC is also the output at which P = MC.
• D)There is not enough information to answer this question.

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Definitions:

Academic Skills

The abilities and competencies that are directly related to learning and academic performance, including reading, writing, analysis, and problem-solving.

Intellectual Abilities

Cognitive capacities related to understanding, reasoning, problem solving, and decision making.

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Educational approaches designed to provide a deeper, more complex learning experience, often by adding varied resources and stimuli beyond standard curriculum expectations.

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A colloquial term often used to describe a young child who exhibits advanced abilities or development in one or more areas at an early age.