What kind of efficiency is achieved if P = MR = MC the minimum ATC?

a. productive efficiencyb. allocative efficiencyc. neither productive nor allocative efficientd. both productive and allocative efficient

Which of the following is true regarding the long-run effect of a decrease in market demand in a constant-cost industry?

a. The price will remain the same, but the number of firms will decrease.b. The price will fall, and the number of firms will decrease.c. The price will increase, but the number of firms will decrease.d. The price will remain the same, but the number of firms will increase.

What combination of characteristics of a perfectly competitive market ensures that the firms in the market will be price takers?

a. many buyers and sellers, and dissimilar productsb. similar products and costless informationc. many buyers and sellers, and similar productsd. few buyers and sellers, similar products, and an open market