When Comparing a Perfectly Competitive Firm and a (Single- Price)monopolist,a

question 60

Multiple Choice

When comparing a perfectly competitive firm and a (single- price) monopolist,a major difference is that

• A)the monopolist produces where MR = MC,but the perfect competitor does not.
• B)the perfect competitor produces where P = MC,but the monopolist does not.
• C)the perfect competitor minimizes its costs,but the monopolist does not.
• D)the monopolist achieves allocative efficiency but the perfect competitor does not.
• E)the perfect competitor achieves productive efficiency,but the monopolist does not.

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Definitions:

JIT

Just-In-Time, an inventory management strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

TPS

Toyota Production System, a manufacturing methodology focused on reducing waste and improving efficiency and quality.

Lean Systems

Lean systems are management philosophies that focus on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.