Resource allocative efficiency exists for a perfectly competitive firm because a. price equals average total cost and the firm equates marginal revenue and average total cost to maximize profits. b. price is less than marginal revenue and the firm equates marginal cost and marginal revenue to maximize profits. O c. price is greater than marginal revenue and the firm equates marginal revenue with average total cost to maximize profits. d. price equals marginal revenue and the firm equates marginal revenue and marginal cost to maximize profits.

Resource allocative efficiency exists for a perfectly competitive firm because a. price equals average total cost and the firm equates marginal revenue and average total cost to maximize profits. b. price is less than marginal revenue and the firm equates marginal cost and marginal revenue to maximize profits. O c. price is greater than marginal revenue and the firm equates marginal revenue with average total cost to maximize profits. d. price equals marginal revenue and the firm equates marginal revenue and marginal cost to maximize profits.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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