Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 9 - Pure Competition in the Long Run - Quick Quiz for Figure 9.6 - Page 187: 3

Answer

C. Means that the “right goods” are being produced in the “right ways.”

Work Step by Step

In a perfect competitive industry, P=MR. When P=MR=MC-Minimum ATC, it means that the firm is following the profit maximizing rule of MC=MR. It also means that all those who are willing to pay for the good are getting the good, which means that the market is efficient.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions