Pure Competition Produces a Socially Optimal Allocation of Resources in the Long

question 117

Multiple Choice

Pure competition produces a socially optimal allocation of resources in the long run because

• A) marginal cost equals marginal revenue.
• B) marginal cost equals average total cost.
• C) marginal revenue equals price.
• D) marginal cost equals price.

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Definitions:

Hostility Toward Unionization

Negative attitudes or actions by employers, management, or other groups against the formation, growth, or activities of labor unions.

Company Dominated Unions

Unions that are controlled or heavily influenced by employers, often criticized for not genuinely representing the interests of workers.

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales.

European Union

A politico-economic union of 27 European countries that are located primarily in Europe, aimed at fostering economic cooperation and has its own currency, the Euro, which is used by 19 of the member countries.