The achievement of the optimal allocation of society's scarce ...

[Tirant22]

The achievement of the optimal allocation of society's scarce resources requires that regulators set prices equal to firms marginal cost.
 a. True
  b. False

Question 2

A perfectly competitive firm is currently producing where price is 8 and both marginal cost and average variable cost are 9 . To maximize profit or minimize loss in the short run, this firm should
 a. raise its price
  b. increase its output
  c. reduce its output
  d. lower its price
  e. shut down

[chereeb]

Answer to Question 1

A

Answer to Question 2

E