Compared to the Productive Efficiency of a Perfectly Competitive Firm

question 116

Multiple Choice

Compared to the productive efficiency of a perfectly competitive firm, a monopolist tends to be

• A)very efficient because it charges a higher price
• B)more efficient because it produces greater output
• C)inefficient
• D)equally efficient, as it also produces where MR = MC
• E)very efficient because it conserves resources by producing less output

---

Definitions:

Government Interference

Actions taken by the government to influence the economy or specific industries, which can include regulations, taxes, or subsidies.

Country

A distinct territorial body or political entity recognized as an independent nation.

Sugar

A sweet-tasting, soluble carbohydrate used widely as a sweetener in food and beverages, derived from various sources such as sugarcane and sugar beet.

Production Quota

A limit set on the amount of goods that can be produced, often used by governments to control supply and stabilize market prices.