The Most Efficient Level of Output for a Perfect Competitor

question 226

Multiple Choice

The most efficient level of output for a perfect competitor

• A)is greater in the short run than the long run.
• B)occurs when average costs are rising.
• C)is not necessarily good news for the consumer.
• D)in the long run is also the cheapest level of output.

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Definitions:

Equilibrium Level

The state at which market supply and demand balance each other, resulting in stable prices.

Exports And Imports

The selling of goods and services produced in one country to another country (exports) and the buying of goods and services from another country (imports).

World Price Level

The average of prices for goods and services across different countries, adjusted for exchange rate differences, reflecting the global cost of living.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, often used for explanatory purposes.