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    Question

    From the resource allocation point of view, perfect

    competition is preferable because 
    A the firm operate at excess capacity Correct Answer Incorrect Answer
    B there is no idle capacity Correct Answer Incorrect Answer
    C there is a whole variety of output Correct Answer Incorrect Answer
    D free entry and exit of firms Correct Answer Incorrect Answer

    Solution

    From the resource allocation point of view, perfect competition is preferable because there is no idle capacity.

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