If production is occurring where marginal cost exceeds price, the purely competitive firm will
A) maximize profit, but resources will be underallocated to the product.
B) maximize profit, but resources will be overallocated to the product.
C) fail to maximize profit and resources will be overallocated to the product.
D) fail to maximize profit and resources will be underallocated to the product.
Correct Answer:
Verified
Q50: Assume that society places a higher value
Q50: The term allocative efficiency refers to
A) the
Q51: The term productive efficiency refers to
A) any
Q52: Allocative efficiency occurs whenever
A)consumer surplus is maximized.
B)it
Q53: If the price of bottled water is
Q54: Under pure competition, in the long run
A)
Q54: Which of the following outcomes is consistent
Q55: Entrepreneurs in purely competitive industries
A)have no incentive
Q56: The theory of creative destruction was advanced
Q83: Creative destruction is
A) the process by which
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