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