A Purely Competitive System Minimizes Production Costs And, at the Same

question 73

True/False

A purely competitive system minimizes production costs and, at the same time, tends to keep economy wide profits at a minimum.

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Definitions:

Value Of Time

The economic worth assigned to time, reflecting what is foregone in engaging in a particular activity versus alternative uses.

Scarce Resources

Economic concept describing materials or services in limited availability relative to desired uses, necessitating allocation.

Efficient

In economic terms, relates to an allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.