A Perfectly Competitive Industry in Long-Run Equilibrium Is Described as Efficient

question 146

Multiple Choice

A perfectly competitive industry in long-run equilibrium is described as efficient because firms

• A)produce at the low point on their average cost curve.
• B)produce where marginal cost yields a profit.
• C)earn no more than the cost of capital.
• D)are not profitable.

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Definitions:

Freemium Business Models

A business strategy where basic services are provided free of charge while more advanced features must be paid for.

Market Competition

The rivalry among businesses to attract customers, increase sales, and improve market share by offering better products, prices, or services.

Professional Tax

A tax levied by state governments in India on individuals working in various professions, trades, and employment.

Traditional Methods

Established techniques or approaches that have been used over time, often passed down through generations, in various fields such as medicine, agriculture, or education.