One of the possible reasons for high sales and steady profit margins of General Motors, Ford, and Chrysler during 1950s and 1960s were aggressive pricing and design innovations.
Indicate whether the statement is true or false
Question 2
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.
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