If Markets Are Perfectly Competitive, Then the Production of Goods

question 51

Multiple Choice

If markets are perfectly competitive, then the production of goods

• A) will use the least costly combination of resources.
• B) will occur at an average total cost value that is above the minimum.
• C) will require government intervention.
• D) will always lead to business failures.

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Definitions:

Cash Proceeds

The total amount of cash received from transactions, often relating to the sale of assets or products.

Discounted Note

A financial instrument involving a loan document that has been reduced from its face value to reflect current market interest rates.

Journal Entry

A record of a business transaction in an accounting journal that details the financial implications of the transaction.

Note Payable

A written promise to pay a certain amount of money, usually with interest, at a future date or on demand.