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.

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Definitions:

Prudently

Acting with or showing care and thought for the future, typically in the management of resources or decision-making processes.

Repair Costs

Expenses incurred to fix or restore damaged or worn-out goods or property to their original condition.

Legal Action

A process by which a court of law is engaged to pursue a legal remedy, often involving litigation.

Differing Standards

Variations in rules, regulations, or norms across different areas, organizations, or systems.