Possible Reasons for X-Inefficiency Include the Following, Except

question 169

Multiple Choice

Possible reasons for X-inefficiency include the following, except

• A) managers having other goals besides maximizing profits.
• B) workers being poorly motivated or poorly supervised.
• C) costs of materials rising due to tight supply conditions.
• D) the firm being lethargic due to the absence of competition.

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Definitions:

Worker Cost

The total expense incurred by an employer in compensating an employee, including wages, benefits, and taxes.

Purely Competitive Market

An idealized market form where products are identical, allowing for easy entry and exit of firms, leading to perfect information and no control over prices by any single entity.

Wage Rate

The fixed amount of compensation paid to an employee for their services.

Workers

Individuals engaged in any form of employment, contributing labor to produce goods or provide services.