Some Economists Argue That Competitive Price-Searcher Markets Are Inefficient Because

question 53

Multiple Choice

Some economists argue that competitive price-searcher markets are inefficient because

• A) the firms earn economic profits in the long run.
• B) the firms' marginal costs and marginal revenues are not always equal.
• C) firms do not produce the output rate that would minimize their average total costs.
• D) barriers to entry are high.

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Definitions:

Frontal Lobe

The brain segment responsible for managing choices, resolving issues, regulating intentional actions, awareness, and feelings.

Synaptic Activity

The process by which neurons communicate with each other through the release and reception of chemical messengers across synapses.

Limbic System

A complex system of nerves and networks in the brain, involved in controlling basic emotions and drives.

Lesions

Abnormal changes in body tissues caused by disease or injury.