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:

Telemarketer

An individual or company that markets products or services over the telephone.

Unfair Practices

Acts or behaviors considered to be unjust, deceptive, or harmful to consumers or business competition.

Federal Trade Commission

The Federal Trade Commission (FTC) is a U.S. federal agency tasked with consumer protection and the prevention of anti-competitive business practices.

Consumer Protection

refers to laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.