Which of the Following Outcomes Is Consistent with a Purely

question 58

Multiple Choice

Which of the following outcomes is consistent with a purely competitive market in long-run equilibrium?

• A) Consumer and producer surplus will be maximized.
• B) P = MC = lowest AVC.
• C) The minimum willingness to pay equals the maximum acceptable price.
• D) We would expect all of these to occur in the long run in a purely competitive market.

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Definitions:

Cockatoos

A type of large, often colorful and noisy parrot native to Australia and surrounding islands.

Smuggled

Refers to the act of moving goods illegally into or out of a country, bypassing customs regulations and taxes.

Production Function

A model in mathematics that delineates how production inputs are related to the output generated.

Long-run

A period of time in which all factors of production and costs are variable, allowing companies to adjust all inputs.