Because the Equilibrium Position of a Purely Competitive Seller Entails

question 14

True/False

Because the equilibrium position of a purely competitive seller entails an equality of price and marginal costs, competition produces an efficient allocation of economic resources.

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Definitions:

Owner's Drawings

The funds taken from the business by the owner for personal use, not considered as salary or wages.

Owner Drawings

Refers to the money or assets taken out of a business by the owner(s) for personal use.

Net Income

The profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Expenses

Costs incurred by a business in the process of earning revenues.