Firms in a Perfectly Competitive Industry Are Producing Goods Efficiently

question 219

Multiple Choice

Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the

• A) AVC curve.
• B) MC curve.
• C) LAC curve.
• D) AFC curve.

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Definitions:

International Trade

The exchange of goods and services between countries, which can involve both importing and exporting.

Imported Good

A product or service that is brought into one country from another for the purpose of being sold or used, reflecting trade relationships and economic dependencies between nations.

Tax

Mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization.

World Price

The global market price of a product or service, set by worldwide demand and supply.