Economics Multiple Choice Question – 30 April 2023

A firm is operating in a perfectly competitive market.

What would ensure that it is both productively and allocatively efficient?

Select ONE answer:

1. It is in long-run equilibrium.
2. It is maximising total revenue.
3. It is producing where marginal revenue is equal to marginal cost.
4. Long-run average costs are falling and sales are rising.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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