Multiple Choice
If a purely competitive firm is producing where price exceeds marginal cost, then
A) the firm will fail to maximize profit, but resources will be efficiently allocated.
B) the firm will fail to maximize profit and resources will be overallocated to the product.
C) the firm will fail to maximize profit and resources will be underallocated to the product.
D) resources will be underallocated to the product, but the firm will maximize profit.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Which of the following would not be
Q4: In long-run equilibrium under pure competition, all
Q5: A patent gives a firm the power
Q7: Assume a purely competitive decreasing-cost industry is
Q9: The long-run supply curve for a purely
Q10: So-called creative destruction leads to all of
Q11: In pure competition, if the market price
Q12: (Last Word) Patents are most likely to
Q13: (Consider This) The average life expectancy of
Q227: A purely competitive firm that is earning