Which of the Following Statements Is True

question 126

Multiple Choice

Which of the following statements is true?

• A)As a consequence of the monopoly firm producing the quantity of output at which price equals marginal cost, it is resource allocative efficient.
• B)As a consequence of the perfectly competitive firm producing the quantity of output at which price equals marginal cost, it is resource allocative efficient.
• C)As a consequence of the perfectly competitive firm producing the quantity of output at which price equals marginal cost, it is productive efficient.
• D)As a consequence of the monopoly firm producing the quantity of output at which price equals marginal cost, it is productive efficient.

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Definitions:

Largest Economy

The country or region with the highest gross domestic product (GDP) and overall economic activity in the world.

European Union

A political and economic union of 27 member states that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital within the internal market.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico that aimed to eliminate most tariffs on products traded among these countries, facilitating increased trade and economic integration.

Nonprofit Organizations

Entities that operate for purposes other than making a profit, often focusing on social, educational, charitable, or cultural goals.