Asked by
Mthethwa Nothando
on Nov 05, 2024
Verified
In perfect competition, the condition that ensures that the right things are produced is
A) MUX = PX.
B) P = MC.
C) P = ATC.
D) MRPL = ATC.
Perfect Competition
A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect prices.
Marginal Cost (MC)
The increase in total cost that results from producing 1 more unit of output. Marginal costs reflect changes in variable costs.
- Comprehend the principles of perfect competition and its implications for efficiency in production and resource allocation.
Verified Answer
JI
Learning Objectives
- Comprehend the principles of perfect competition and its implications for efficiency in production and resource allocation.