Competitive Pricing Is Efficient Because

question 187

Multiple Choice

Competitive pricing is efficient because

• A) the price that consumers pay reflects the opportunity cost to society of producing the good.
• B) firms make positive economic profits in long-run equilibrium.
• C) average revenue equals average cost.
• D) firms produce above the minimum efficient scale.

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Definitions:

Streetwise

Refers to having the savvy and practical knowledge needed to deal with the dangers and potential difficulties found in urban environments.

Alertness

The state of being watchful and prompt to meet danger or emergency, or to discover and avoid hidden risks.

Home Visits

Home visits refer to the practice of professionals visiting the homes of clients or patients to provide services, assessments, or support directly in their living environment.

Nine-To-Five

Refers to the traditional work hours adopted by most full-time employment in various countries, typically from 9 am to 5 pm.