In a Perfectly Competitive Market, If P > MC, Then

question 246

Multiple Choice

In a perfectly competitive market, if P > MC, then

• A) too little output is being produced.
• B) too much output is being produced.
• C) production is efficient, as the firm is earning profits.
• D) the firm is paying a price for resources that is too high.

---

Definitions:

Piagetian Theory

A theory of cognitive development that suggests children move through four stages of mental development, emphasizing how they actively construe and understand the world.

Animism

The conviction that all objects, locations, and beings have a unique spiritual nature.

Egocentrism

A cognitive bias that causes individuals to interpret the world solely from their own perspective, often failing to understand others' viewpoints.

Intellectual Stages

Phases of cognitive development through which individuals progress, as proposed by theorists such as Piaget, including stages such as sensorimotor and operational periods.