If a purely competitive firm is maximizing economic profit:Multiple Choiceit is necessarily maximizing per-unit profit.it may or may not be maximizing per unit profit.then per-unit profit will be minimized.it is necessarily over allocating resources to its product.

Multiple Choice QuestionWhy might a monopolist accept a less-than-maximum per-unit profit?Multiple choice question.Maximum per-unit profit always maximizes per-unit cost as well.Maximum per-unit profit is strongly tied to lower total profit.Additional sales more than compensate for the lower profit per unit.The maximum per-unit profit is not possible.

The price that equals marginal cost of production is socially optimal because: multiple choiceit minimizes ATC.it achieves allocative efficiency.it yields a normal profit.it reduces a monopolist's profit.

The profit-maximizing behaviour for a price-taking firm requires it to operate where:Multiple ChoiceP = TR = TC.P = MC = AVC.P = MC = AFC.P = MR = MC = AFC.

Multiple Choice QuestionMonopolistically competitive firms do not achieve allocative efficiency because the Blank______.Multiple choice question.output produced is less than optimal and consumers pay a lower than competitive price, causing inefficient use of resources for societyprice for a monopolistically competitive firm is lower than the average costoutput produced is more than optimal and consumers pay a lower than competitive price, causing inefficient use of resources for societyprice for a monopolistically competitive firm exceeds the marginal cost

Multiple Choice QuestionMonopolistically competitive firms are not productively efficient because output is less than society's optimal level because a producer's Blank______.Multiple choice question.average variable cost per unit is not at its optimal possible costaverage fixed cost per unit is not at its lowest possible costmarginal revenue per unit is not at its optimal possible priceaverage total cost per unit is not at its lowest possible cost