In a Market That Lacks Sufficient Competition

question 157

Multiple Choice

In a market that lacks sufficient competition,

• A) output will generally be less than the output that is ideal from the standpoint of economic efficiency.
• B) output will generally be greater than the output that is ideal from the standpoint of economic efficiency.
• C) price will generally be less than the price that would result if the market was competitive.
• D) profit rates will generally be so low that government subsidies will be necessary to ensure that the firms remain in business.

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