An Imperfectly Competitive Industry Is Often Allocatively Inefficient When Compared

question 85

Multiple Choice

An imperfectly competitive industry is often allocatively inefficient when compared to the performance of a competitive industry, because imperfect competitors

• A) make profits.
• B) operate in the global economy.
• C) obtain economies of scale.
• D) set price above the marginal cost.
• E) maximize profits.

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Definitions:

Federal

Pertaining to the central government, as opposed to state or local governments, especially regarding its relationship with the states in a federal system of government.

Taxable Personal Income

The amount of an individual's income that is subject to taxation after all deductions and exemptions, according to the governing tax laws.

Taxable Income

The portion of an individual's or entity's income used to calculate how much tax they owe to the government in a given tax year.

Deductions

Amounts that can be subtracted from total income for tax purposes, effectively reducing the taxable income.