3 Questions
Which of the following statements is true about perfectly competitive markets?
Exchanges take place at the same price
What is the optimal mix of output achieved in perfectly competitive markets?
The mix where price equals marginal benefit and cost
Which of the following is not guaranteed in perfectly competitive markets?
Fairness
Study Notes
- Perfectly competitive markets allocate products efficiently
- Production and consumption are efficient
- Products are produced inexpensively
- No resources are wasted
- Exchanges take place at the same price
- Optimal mix of output is achieved
- Price equals marginal benefit and cost
- Changes would reduce satisfaction
- Fairness is not guaranteed
- Different income distributions result in different outcomes
Test your understanding of perfectly competitive markets with this quiz! From efficient production and consumption to the optimal mix of output, this quiz covers key concepts such as price equaling marginal benefit and cost, exchanges happening at the same price, and the potential for changes to reduce satisfaction. However, keep in mind that while perfect competition may lead to inexpensive products and no wasted resources, it doesn't guarantee fairness and can result in different outcomes based on income distribution. Put your knowledge to the test with this informative quiz.
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