Choose the Statement That Best Compares the Long- Run Equilibrium

question 5

Multiple Choice

Choose the statement that best compares the long- run equilibrium of a competitive industry with that in a monopolized industry (with a single price) .

• A)Allocative efficiency is not possible in either industry.
• B)It is not possible to make this comparison because firms in a competitive industry operate only in the short run.
• C)Allocative efficiency will be achieved in the monopolized,but not the competitive industry.
• D)Resources will be allocated efficiently in both the competitive and monopolized industries.
• E)Allocative efficiency will be achieved in the competitive,but not the monopolized industry.

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Definitions:

Two-Factor Theory

A theory by Frederick Herzberg that identifies motivation and hygiene factors as key to employee satisfaction and performance.

Work Outcomes

The results or outputs generated from the efforts and activities of employees or teams within an organization.

Good Performance

A measure of how well a task is executed or the success level of an endeavor or employee.

Expectancy

The probability that the amount of work effort invested by an individual will result in a high level of performance.