Perfect Competition Quiz
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Questions and Answers

In perfect competition, what does price equal?

  • Fixed cost
  • Average cost
  • Marginal cost (correct)
  • Total cost

    • If price were greater than marginal cost in perfect competition, what would this imply?

  • More ought to be produced (correct)
  • No change in production
  • Less ought to be produced
  • Producers will incur losses

    • In perfect competition, what does marginal utility equal when price equals marginal cost?

  • Average cost
  • Total cost
  • Marginal cost (correct)
  • Fixed cost

    • What is argued to be the implication of price equaling marginal cost in perfect competition?

    <p>Optimal resource allocation</p> Signup and view all the answers

    What happens when price equals marginal cost in perfect competition?

    <p>Production levels are optimal</p> Signup and view all the answers

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