Graph a and graph b have several differences. What difference between the two shows a failure to meet productive efficiency?
a. In graph a, ATC touches the demand curve at P equals MC.
b. In graph b, the demand curve is downward sloping.
c. In graph a, P equals both MR and MC.
d. In graph b, MC is less than P*, and q* is less than it could be.
d. In graph b, MC is less than P*, and q* is less than it could be.
Economics
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A) rejected if they are not totally realistic. B) logical rather than empirically testable. C) simple and reasonable rather than complex. D) maintained until overwhelming evidence to the contrary occurs.
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