5 Questions
What is a perfect market in economics also known as?
Atomistic market
In a perfectly competitive market, what is the condition for allocative efficiency?
Output occurs where marginal cost equals average revenue
What does a profit-maximizing producer face in a perfectly competitive market?
Market price equal to its marginal cost
Why does a monopoly not have a supply curve?
Because it does not face a perfectly competitive market price
In the short-run, why are perfectly competitive markets not necessarily productively efficient?
Output will not always occur where marginal cost equals average cost
Test your knowledge of perfect market conditions and general equilibrium theory in economics. Explore the idealizing conditions of perfect competition and their implications in theoretical models.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
