What Is One Reason Why Would Corn Production, Which Takes

question 125

Multiple Choice

What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?

• A) because a perfectly competitive firm produces at the lowest possible long run average total cost
• B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost
• C) because a perfectly competitive firm is a price maker
• D) because the goal of a perfectly competitive firm is to profit maximize

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Definitions:

Price Adjustments

Changes made to the selling price of goods or services in response to market conditions, cost changes, or errors in the original pricing.

Single-step Income Statement

A simplified form of income statement that calculates net income by subtracting total expenses directly from total revenues without categorization.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been subtracted from total revenue.

All Expenses

Refers to the total costs incurred by a business in its operations, encompassing both fixed and variable expenses.