1. Productive efficiency takes place in any market wherever

A) MR = MC.
B) MC = P.
C) MC = ATC.
D) at the lowest point on the MC curve.
E) beyond the lowest point on the MC curve.

2. When a perfectly competitive firm is earning an economic profit, the firm is

A) productively efficient.
B) producing to the right of the productively efficient point on the graph.
C) producing where MC = ATC.
D) producing at the lowest point on ATC.
E) all of the above answers are correct.

3. When a perfectly competitive firm is earning a loss, the firm is

A) productively efficient and allocatively efficient.
B) productively efficient and allocatively inefficient.
C) productively inefficient and allocatively efficient.
D) productively inefficient and allocatively inefficient.
E) producing output to the left of the lowest point on ATC.