In Principle,a Comparison of the Long- Run Equilibrium of Competitive

question 83

Multiple Choice

In principle,a comparison of the long- run equilibrium of competitive and (single- price) monopoly industries leads to the following conclusion:

• A)neither industry is capable of allocative efficiency.
• B)both the competitive industry and the monopoly will allocate resources efficiently.
• C)the competitive industry will achieve productive efficiency but the monopoly will not.
• D)the competitive industry is consistent with allocative efficiency whereas the monopoly is not.
• E)both the competitive industry and the monopoly will allocate resources inefficiently.

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Definitions:

Payout Formula

A predefined method or equation used to calculate the amount to be disbursed to individuals or entities, often used in financial contexts like investments or insurance.

Stock Purchase

The act of buying shares in a company, which represents a portion of ownership in the corporation.

Discount Price

A reduced price offered on goods or services, typically below the standard cost.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work done.