Consider the Efficiency of Various Market Structures and Complete the Following

question 108

Multiple Choice

Consider the efficiency of various market structures and complete the following sentence.The larger the minimum efficient scale of firms,ceteris paribus,the

• A)more likely we are to have a concentrated market and allocative inefficiency.
• B)less the tendency toward monopoly inefficiency.
• C)lower the advantages of large-scale production.
• D)greater the number of firms comprising an industry.
• E)more likely firms will display productive efficiency.

---

Definitions:

Adaptive System

A system that is capable of adjusting its behavior or structure based on changes in its environment or internal state.

Regulated Market

A market that is controlled or supervised by rules and laws designed to protect consumers and fair competition.

Offeree

The person or party to whom an offer is made in a contract situation.

Mutual Promises

Agreements where both parties commit to perform or refrain from specific actions, forming the basis of a contract.