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Moderate

Productive Efficiency in the Market

APMICR-Y3ATEV

In which of the following situations will a firm achieve productive efficiency?

I. A perfectly competitive firm is earning short-run economic profits.
II. A monopolistically competitive firm is earning normal profits in the long-run.
III. A perfectly competitive firm is earning normal profits in the long-run.

A

I only

B

II only

C

III only

D

II and III only

E

I, II and III