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
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