The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
FIGURE 12- 4
-Consider the efficiency of various market structures.In the absence of other market failures,allocative efficiency is achieved only under perfect competition because only this market structure results in
A) P = MC.
B) zero long- run profits.
C) maximization of profits through competition.
D) complete freedom of entry and exit.
E) productive efficiency.
Correct Answer:
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