In the model of perfectly competitive markets, the market outcome is allocatively efficient because Question 4 options: all firms are price takers all firms break even in the long run the sum of consumer and producer surplus is maximized economic profits are maximized average total cost is minimized for each firm

Perfectly competitive markets are said to be allocatively efficient. They produce quantities by…

Answered: In the model of perfectly competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the model of perfectly competitive markets, the market outcome is allocatively efficient because

Question 4 options:

	all firms are price takers
	all firms break even in the long run
	the sum of consumer and producer surplus is maximized
	economic profits are maximized
	average total cost is minimized for each firm

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