CFA Practice Question

There are 891 practice questions for this topic.

CFA Practice Question

Under rather restrictive assumptions, the equilibrium static efficiency conditions of the purely competitive model are ______
A. efficient in the short run, but they will lead to inefficiency in the long run.
B. ideal from society's viewpoint.
C. inefficient, but they will lead to an equitable distribution of income.
Explanation: The purely competitive model implies allocative efficiency which is an ideal condition from society's viewpoint.

User Contributed Comments 1

User Comment
nmech1984 Why not A? Any idea please?
You need to log in first to add your comment.