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:

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.

S&P 500 Portfolio

A portfolio of investments that aims to mimic the performance of the S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical portfolio of all investable assets, weighted by market capitalization, that represents the entire market.

World Equities

Shares in companies located around the globe, representing ownership across different countries and industries.