The Figure Given Below Shows the Demand Curves of Two

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-The perfectly competitive market structure results in economic efficiency because:

A) price is equal to marginal revenue in the short run.
B) firms are producing at the minimum point of the average-total-cost curve in the short run.
C) a normal profit is being earned in the long run.
D) a normal profit is being earned in the short run.
E) in the long-run, price is equal to marginal cost and minimum average-total-cost.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free