Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?

A) It is making economic profits in the long run.
B) Marginal cost equals average variable cost.
C) It produces at the minimum average total cost.
D) Its marginal revenue is less than average revenue.

Productively Efficient

Refers to a situation where goods and services are produced at the lowest possible cost, and resources are utilized in the most efficient manner.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, allowing no single firm to influence the market price.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.