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Multiple Attempts Not allowed. This test can only be taken once Force Completion before clicking Save a Once started, this test must be completed in one sitting. Do not leave the test Remaining Time: 56 minutes, 21 seconds. A Question Completion Status: 13 18 Moving to another question wil save this response. Question 6 Perfectly Competitive markets are efficient" This means that o only that the socially most satisfying quantity is produced e only that production occurs at the lowest Average Total Cost the most satisfying distribution of opportunity exists the socially most satisfying quantity is produced, and that it is produced at the lowest possible Average Total Cost Moving to another question wil save this response

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6. The correct answer is: d)

Reason: Under a perfectly competitive market, output is produced at a socially optimal level, total surplus is maximized and production occurs at the optimal level i.e. at the minimum possible cost.

9.

The correct answer is: c)

Reason: if the oligopoly firms collude, then they can act like a monopolist/cartel and can charge discriminately higher prices and earn maximum profit. However, the outcome will not be socially desirable .

13.

The correct answer is: b)

Reason: In the long run, all the existing firms under a perfectly competitive market must earn normal profit. If the firm expands, then it will be worthless and if it reduces its size, then it will forgo some additional profit. Closing is not the optimal decision. So the best option is to continue in the business as it is.

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