Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is a perfect market in economics also known as?
What is a perfect market in economics also known as?
- Monopsonistic market
- Monopolistic market
- Atomistic market (correct)
- Oligopolistic market
In a perfectly competitive market, what is the condition for allocative efficiency?
In a perfectly competitive market, what is the condition for allocative efficiency?
- Output occurs where marginal cost is minimized
- Output occurs where marginal cost exceeds average revenue
- Output occurs where average cost is minimized
- Output occurs where marginal cost equals average revenue (correct)
What does a profit-maximizing producer face in a perfectly competitive market?
What does a profit-maximizing producer face in a perfectly competitive market?
- Market price higher than its marginal cost
- No specific relationship between market price and marginal cost
- Market price equal to its marginal cost (correct)
- Market price lower than its marginal cost
Why does a monopoly not have a supply curve?
Why does a monopoly not have a supply curve?
Signup and view all the answers
In the short-run, why are perfectly competitive markets not necessarily productively efficient?
In the short-run, why are perfectly competitive markets not necessarily productively efficient?
Signup and view all the answers
