Perfectly Competitive Markets Are Efficient Because

question 182

Multiple Choice

Perfectly competitive markets are efficient because

• A) they always reach equilibrium.
• B) firms in the market are price takers.
• C) the cost to society for producing the goods is exactly equal to the value that society places on the good.
• D) the long run equilibrium assures that the prices of resources will not increase.

---

Definitions:

Isolated Dyads

A pair of individuals who are socially isolated from others, focusing solely on each other in their interactions.

Equal Size

A description of two or more entities having the same dimensions, capacity, volume, or numerical value.

Long-Term Projects

Initiatives or endeavors that require an extended period to complete, typically involving complex tasks and significant planning.

Concentrate

To focus one's attention or mental effort on a specific object, task, or activity.