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Anestetic [448]
4 years ago
10

A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency​ mean? A. Each

firm produces up to the point where all scale economies are exhausted. B. Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. C. Firms use an input combination that minimizes cost and maximizes output. D. Production occurs at the lowest average total cost.
Business
1 answer:
Sedaia [141]4 years ago
6 0

Answer: B. Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit.

Explanation:

Allocative efficiency means that the point chosen on the production possibility frontier is socially preferred.

In a perfectly competitive market, allocative efficency is achieved at the point where price equals the marginal cost of production. At this price producer and consumer surplus is maximised.

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3 years ago
________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering an
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D.  Customer-perceived value

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3 years ago
The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer,
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Answer:

Option (D) is correct.

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3 years ago
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3 years ago
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