Under Perfect Competition,no Matter How Much Output Is Produced,the Total

question 15

Multiple Choice

Under perfect competition,no matter how much output is produced,the total revenue curve is a:

• A)positively sloped line.
• B)negatively sloped line.
• C)horizontal straight line.
• D)U-shaped curve.
• E)hill-shaped curve.

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Definitions:

Social Planner

An idealized figure in economic theory responsible for designing economic policies or interventions to achieve optimal allocation of resources and welfare in a society.

Social Cost

The total cost to society, including both private costs incurred by producers and external costs to other parties not involved in the transaction.

Private Value

The value of an asset or service as perceived by an individual or entity, not necessarily reflecting its market value.

Socially Optimal

A state of resource allocation where social welfare is maximized, balancing benefits and costs to society.