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Question
Competitive pricing is efficient because
A) the price that consumers pay reflects the opportunity cost to society of producing the good.
B) firms make positive economic profits in long-run equilibrium.
C) average revenue equals average cost.
D) firms produce above the minimum efficient scale.
Answer
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Related questions
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Q:
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Which of the following statements is FALSE?
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Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.