Asked by
Briana Osipow
on Nov 05, 2024
Verified
Society will produce the efficient mix of output if all firms equate
A) price and marginal cost.
B) price and average total cost.
C) marginal cost and average total cost.
D) price and marginal revenue.
Marginal Cost
The financial increment incurred by the production of an extra unit of a product or service.
Average Total Cost
It refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.
Efficient Mix
An allocation of resources that maximizes the total utility to society, where no individual can be made better off without making someone else worse off.
- Master the critical elements of perfect competition and their effects on the efficiency of production activities and the allocation of resources.
Verified Answer
AP
Learning Objectives
- Master the critical elements of perfect competition and their effects on the efficiency of production activities and the allocation of resources.