In the short-run, the efficient industry outcome under perfect competition occurs at the level of output where: (A) MB =...
In the short-run, the efficient industry outcome under perfect competition occurs at the level of output where:
(A) MB = P = MC.
(B) MB > P.
(C) P > MC.
(D) consumer surplus equals producer surplus
(E) P = AC.
Homework Answers
Answer
Option A
(A) MB = P = MC.
The efficient industry outcome is where the marginal benefit to the consumer is equal to marginal benefit to producer and that point the industry price is in equilibrium which is also called the Qd=Qs level of output.
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