Solved

Consider an Industry with Three Profit- Maximizing Firms Producing Identical

Question 108

Multiple Choice

Consider an industry with three profit- maximizing firms producing identical soccer jerseys.At their current levels of output,Firm A has a MC of $22,Firm B has a MC of $26,and Firm C has a MC of $27.Each firm is equating price and marginal cost and is operating on their LRAC curve.Which of the following statements is definitely true?


A) Each firm and the industry are productively efficient.
B) Each firm and the industry are allocatively efficient.
C) The industry is productively efficient but each firm is not.
D) Each firm is productively efficient but the industry is not.
E) Each firm is allocatively efficient but the industry is not.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents