Question: (1) Allocative Efficiency associated with competitive equilibrium is a condition where a.Producer plus consumer surplus equals zero b.Society obtains the greatest output for the least

(1) Allocative Efficiency associated with competitive equilibrium is a condition where

a.Producer plus consumer surplus equals zero

b.Society obtains the greatest output for the least price

c.The price of output is greater than consumer surplus

d.AVC = ATC

(2) For a firm in a perfectly competitive industry

a.its ATC is its supply curve

b.its long-run AVC curve is its long-run supply curve

c.Its MC curve is its supply curve

d.its long-run ATC curve is its long-run supply curve

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

(1) A Cournot Oligopoly (duopoly) exists where the market demand function facing each firms is P = 4 - (Q1 + Q2) , where Q = (Q1 + Q2) and the MC facing each firm is zero. If each firm takes the...

Q:

Allocative Efficiency associated with competitive equilibrium is a condition where Question 25 options: Producerplus consumer surplusequals zero The price of output is greater than consumer surplus...

Q:

QUESTION 1 Price discrimination refers to O selling a product at different prices, with the price difference being unrelated to differences in marginal cost. O selling a product at different prices...

Q:

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Q:

1.Productive efficiency for an individual firm requires that a.all resources be fully used. b.MC = P for all goods. c.the firm be on its LRAC curve. d.the firm be allocatively efficient. e.P = ATC...

Q:

1.Business profit is: A.the residual of sales revenue minus the explicit accounting costs of doing business. B.a normal rate of return. C.economic profit. D.the return on stockholders' equity. 2.The...

Q:

Give explanation for each question. 29.A measure of inflation that washes out price extremes employs: A.mean price changes. B.Weighted average price changes. C.the standard deviation of price...

Q:

Question 1 (Multiple Choice Worth 1 points) (01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? Trade could affect costs. Its supply could be...

Q:

Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point) Trade could affect costs. Its supply could be scarce in one market and very great in...

Q:

Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point) Trade could affect costs. Its supply could be scarce in one market and very great in...

Q:

Peine Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 50%, and large scented candles...

Q:

What are two kinds of information or scales that are most commonly used by systems analysts?

Q:

answer this Wee DW Show Attempt History | Correct. Find three positive numbers whose sum is 63 and such that their product is as large as possible. Enter your answers in increasing order. First...

Q:

According to the diffusion of inhovation concept, consumers who are venturesome, higher educated, and use multiple information sources in their adoption of products are called Muntiple Choice the...

Q:

7. List examples from a communication situation with a foreign person in which you have used the sauna manoeuvre (described in this chapter), and examples where you have been subjected to the...

Q:

1. To provide an understanding of how trust is established in a communication context.

Q:

2. In this chapter, the reader should reflect on the following concepts: Basic values, basic interests, position, socialization process, mental variables and norm distribution.