if the market for donuts is perfectly competitive and all firms are producing a quantity that generates no deadweight loss and the cost per unit is minimized, which of the following is most likely true?

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13-12-2022
Business

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if the market for donuts is perfectly competitive and all firms are producing a quantity that generates no deadweight loss and the cost per unit is minimized, which of the following is most likely true?

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Bhuvangarg Bhuvangarg · Answer 1 · 2022-12-18T12:07:02+01:00

Occurs when a firm produces the quantity that keeps the average total cost as low as possible and a firm that is perfectly competitive produces this quantity over time.

What Is Amazing Contest?

According to economic theory, perfect competition occurs when all businesses sell the same products, market share has no effect on price, businesses can enter or exit freely, buyers have complete or perfect information, and businesses cannot set prices.

What is an example of a perfect competition?

Markets for farmers: Perhaps the closest real-world example of perfect competition is the typical farmers' market. Small producers sell products that are nearly identical at prices that are very similar.

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