The term productive efficiency refers to
a. any short-run equilibrium position of the competitive firm
b. the production of all goods and services that consumers need
c. the production of a good at the lowest long-run average cost
d. the equality between average total and average variable cost
e. satisfying the condition that MR = MC
Question 2
If Family Travel Agency, a monopolistic competitor, offers services that are differentiated from the services of other producers in the industry, it
a. faces a perfectly elastic demand curve
b. is a price taker
c. has some power to control the price it charges
d. faces a perfectly inelastic demand curve
e. produces a product with no close substitutes
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