Arbitrage may not achieve purchasing power parity due to

Today, the average U.S. tariff is 4.6 percent of the value of imported goods, which is very low by historical standards

Indicate whether the statement is true or false

Why does economic theory predict that a perfectly competitive firm will produce at the point where price equals marginal cost?

a. This point provides an efficient allocation of society's resources. b. This point results in zero economic profit. c. This point maximizes profit for the firm. d. This point will minimize ATC for the firm.