Which Assumption(s) Is (Are) Necessary for an Efficient Allocation of Resources

question 173

Multiple Choice

Which assumption(s) is (are) necessary for an efficient allocation of resources among firms?

• A) Factor markets are open and competitive.
• B) All firms pay the same prices for inputs.
• C) Firms behave so as to maximize their profits.
• D) All of the above are correct.

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