Which of the following statements is true?
A) Production in a perfectly competitive market is efficient because resources in the market leave those sectors in which price cannot cover their costs of production and enter those sectors where price can cover their costs of production.
B) Production in a perfectly competitive market is suboptimal because absence of free entry and exit of firms allows firms to specialize in only one particular industry.
C) Production in a perfectly competitive market is Pareto inefficient because the government or a central planner carefully analyzes the needs and requirements of the society and instructs firms on what to produce and in what quantity.
D) Production in a perfectly competitive market is Pareto efficient because the government or a central planner carefully analyzes the needs and requirements of the society and instructs firms on what to produce and in what quantity.
A
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According to the Keynesian macroeconomic model, consumption is a function of which three variables?
Select one: a. a) Autonomous consumption, intended investment, and the marginal propensity to consume b. b) Autonomous consumption, the marginal propensity to consume, and income c. c) Autonomous consumption, actual investment, and the marginal propensity to consume d. d) The marginal propensity to consume, income, and intended investment
For a low-income country to develop into a high-income country, ____ is (are) needed
a. a sustained and rapid expansion in the money supply b. sustained economic growth c. tax breaks on consumption goods d. deflation