QuestionMay 27, 2025

True or False Question True or false: Efficiency within pure competition can be temporarily disrupted by a change in consumer tastes. True False C Need help? Review these concept resources. Read About the Concept

True or False Question True or false: Efficiency within pure competition can be temporarily disrupted by a change in consumer tastes. True False C Need help? Review these concept resources. Read About the Concept
True or False Question
True or false: Efficiency within pure competition can be temporarily disrupted by a change in consumer tastes.
True
False
C Need help? Review these concept resources.
Read About the Concept

Solution
4.2(332 votes)

Answer

True Explanation 1. Understand Pure Competition In pure competition, many firms sell identical products, and no single firm can influence the market price. 2. Analyze Consumer Taste Changes A change in consumer tastes can shift demand, affecting equilibrium price and quantity temporarily. 3. Determine Impact on Efficiency Temporary disruptions in efficiency occur as markets adjust to new demand levels, impacting resource allocation.

Explanation

1. Understand Pure Competition<br /> In pure competition, many firms sell identical products, and no single firm can influence the market price.<br /><br />2. Analyze Consumer Taste Changes<br /> A change in consumer tastes can shift demand, affecting equilibrium price and quantity temporarily.<br /><br />3. Determine Impact on Efficiency<br /> Temporary disruptions in efficiency occur as markets adjust to new demand levels, impacting resource allocation.
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