When the ratio of a housing price index to the GDP deflator is rising, this means that housing prices are rising faster than the overall price level.

In a perfectly competitive market, if market price is lower than the average total cost of production:

A) new firms will enter the market. B) existing firms will leave the market. C) all existing firms will earn positive economic profits. D) all existing firms will earn zero economic profits.

Evaluate the following statement: "Competitive price-searcher markets are inefficient relative to purely competitive markets since prices are higher and firms don't produce an output rate that minimizes average total cost. As a result, government action should be undertaken to remedy this situation."