4. The price of the output of a perfectly competitive firm is set b supply and demand in the market. 4 O the firm in order to minimize marginal cost. O the government in order to increase the number of firms. O consumers who see a slightly higher price as meaning better quality

4. The price of the output of a perfectly competitive firm is set b supply and demand in the market. 4 O the firm in order to minimize marginal cost. O the government in order to increase the number of firms. O consumers who see a slightly higher price as meaning better quality

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 8SCQ: A market in perfect competition is in long-run equilibrium. What happens to the market if labor...

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Concept explainers

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).

Question

4. The price of the output of a perfectly competitive firm is set by:
O supply and demand in the market.
4
O the firm in order to minimize marginal cost.
O the government in order to increase the number of firms.
O consumers who see a slightly higher price as meaning better quality

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