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Voluntary exchange
________ optimizes the total consumer surplus and producer surplus in competitive marketplaces, therefore maximizing societal welfare.
Perfectly competitive markets
________ display both productive efficiency (since the output is generated using the most efficient combination of available resources) and allocative efficiency (because the commodities produced are those that customers value the most)
profit maximizer
As a(n) ________, the farmer restricts output to 12 bushels each day.
Market pressure
________ reduces the average cost of manufacturing in the long run.
economic profit
The company optimizes ________ by determining the level at which total revenue surpasses total cost by the largest margin.
Commodity
standardized product, a product that does not differ across producers, such as bushels of wheat or an ounce of gold
Note
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