A change in input prices has no impact on the budget line

Productive efficiency is achieved when firms produce goods and services

A) most desired by society. B) at the highest profit margin. C) at the lowest cost. D) of the highest quality.

Answer the following questions true (T) or false (F)

1. Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is socially desirable. 2. A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output. 3. The market demand curve for a perfectly competitive industry is the horizontal summation of each individual firm's demand curve.