Multiple Choice
Which of the following statements is true?
A) A perfectly competitive firm that seeks to maximize profits will not be resource-allocative efficient.
B) If the demand curve and the marginal revenue curve weren't the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient.
C) Resource allocative efficiency exists when a firm produces its output at the lowest possible per unit cost (lowest ATC) .
D) Productive efficiency exists when firms produce the quantity of output at which price equals marginal cost.
Correct Answer:
Verified
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