Partnership can function as an efficient organizational form when partners have similar backgrounds and skills, and each of their income is largely determined by individual effort

If the price of a good increases, a consumer will substitute away from the relatively more expensive good, which will increase the marginal utility for that good and bring the consumer back to equilibrium

Indicate whether the statement is true or false

A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?

A) Firms use an input combination that minimizes cost and maximizes output. B) Each firm produces up to the point where all scale economies are exhausted. C) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. D) Production occurs at the lowest average total cost.