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

question 85

Multiple Choice

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

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

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Definitions:

TSX

The Toronto Stock Exchange, one of the largest stock exchanges in the world, based in Canada.

OTC

Over-the-counter; referring to securities traded in some context other than on a formal exchange.

Proprietorship

A business entity owned and operated by a single individual, with no distinction between the business and the owner.

Personal Liability

The responsibility of individuals to repay debt or fulfill obligations from their own assets, distinct from corporate or shared liabilities.