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.

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Definitions:

Flexibility

The quality of being adaptable or the willingness to adjust to new conditions, an essential trait in business, technology, and personal growth.

Advantage

A condition or circumstance that places one in a favorable or superior position, often compared to competitors.

OS

Operating System, software that manages computer hardware, software resources, and provides common services for computer programs.

Director

An individual appointed or elected to the board of an organization who is responsible for overseeing and guiding the company's policies, finances, and operations.