In the long run, a perfectly competitive industry is allocatively efficient because
a. the opportunity cost of resources needed to produce the last unit of output just equals the marginal value to consumers of the last unit
b. it maximizes producer surplus
c. consumer surplus could be larger if the price were lower
d. production occurs at the lowest average total cost
e. marginal costs are low
A
You might also like to view...
Inflation expectations in the United States generally
A) fell from 1971 to 1976, rose from 1977 to 1985, then fell from 1985 to 1995, and have been stable since then. B) fell from 1971 to 1985, then rose from 1985 to 2000, and have been stable since then. C) rose from 1971 to 1987, then fell from 1987 to 2006. D) rose from 1971 to 1982, then fell from 1982 to 2000, and have been stable since then.
Which one of the following are the components of aggregate expenditures?
a. Household consumption, business investment, government spending for goods and services, and net exports. b. Household consumption, business investment, government transfer payments, and net exports. c. Household consumption, business investment, government spending for goods and services, and exports. d. Household consumption, business investment, government spending for goods and services, and saving. e. Household consumption, business inventories, government spending for goods and services, and net exports.