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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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