Which of the Following Is the Major Reason Why Most

question 85

Multiple Choice

Which of the following is the major reason why most economists are reluctant to charge price searcher markets with allocative inefficiency?

• A) Consumers value the wider variety of quality and styles in competitive price-searcher markets.
• B) Advertising costs are typically so small that they are irrelevant.
• C) Competitive price searchers always operate that the lowest point on their average total cost curve.
• D) Competitive price searchers charge a price equal to marginal cost.

---

Definitions:

Management

The process of directing and controlling a group of people or an organization to achieve a set goal.

Attractive Offer

A proposal or deal that is highly appealing and likely to be accepted by its intended audience, often because of advantageous terms.

Strike

A collective work stoppage undertaken by employees to express grievances or demand improvements in terms and conditions of employment.

Union

An organization formed by workers in the same sector or profession, aimed at negotiating with employers for better wages, working conditions, and benefits.