a perfectly competitive industry, Price and marginal revenue are unrelated P = MR P > MR P < MR A perfectly competitive firm achieves resource allocative efficiency. This is given by the condition: P = MR MC = MR P = MC None of the above

a perfectly competitive industry, Price and marginal revenue are unrelated P = MR P > MR P < MR A perfectly competitive firm achieves resource allocative efficiency. This is given by the condition: P = MR MC = MR P = MC None of the above

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 2QP

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Question

In a perfectly competitive industry,

Price and marginal revenue are unrelated
P = MR
P > MR
P < MR

A perfectly competitive firm achieves resource allocative efficiency. This is given by the condition:

P = MR
MC = MR
P = MC
None of the above

Definition Definition State in which the marginal benefit to a consumer is equal to the marginal cost of producing a product. Allocative efficiency occurs when all the market participants (buyers and sellers) have all of the knowledge required to make informed decisions regarding consumption and production of goods and services.

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