Perfectly Competitive Markets Are Efficient Because

question 182

Multiple Choice

Perfectly competitive markets are efficient because

• A) they always reach equilibrium.
• B) firms in the market are price takers.
• C) the cost to society for producing the goods is exactly equal to the value that society places on the good.
• D) the long run equilibrium assures that the prices of resources will not increase.

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Definitions:

Types of Intelligence

Refers to different ways of understanding, processing, and applying knowledge, such as linguistic, logical-mathematical, and spatial intelligence.

Sternberg

Refers to Robert Sternberg, a psychologist known for his work on intelligence, creativity, and love theories.

Creative Intelligence

The ability to produce novel and valuable ideas or solve problems in innovative ways.

Practical Intelligence

Refers to the ability to solve everyday problems through skilled reasoning that relies on tacit knowledge.