Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?
A)It is making economic profits in the long run.
B)Marginal cost equals average variable cost.
C)It produces at the minimum average total cost.
D)Its marginal revenue is less than average revenue.

Question

Quizplus · Accepted Answer

In a condition of pure competition and productive efficiency, a firm operates where its output level is at the minimum average total cost. This indicates the firm is producing goods at the lowest possible cost per unit, which is a key indicator of productive efficiency.

Which Would Indicate That a Firm Is Operating Under Conditions