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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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