X-Inefficiency Results from

question 124

Multiple Choice

X-inefficiency results from

• A)rent seeking behavior.
• B)the lack of competitive pressure.
• C)third-degree price discrimination.
• D)first-degree price discrimination.
• E)none of the above

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Definitions:

Quarterly Compounding

The process of calculating interest on both the initial principal and the accumulated interest over four periods within a year.

Semi-Annually

Occurring twice a year; typically referring to the frequency at which interest is paid or calculated.

Future Value

The amount of money an investment is expected to grow to over a period of time, assuming a specific interest rate.

Rates of Return

The positive or negative financial outcome of an investment over an agreed-upon period, expressed as a percent of the investment's initial outlay.