Which of the Following Statements Is Correct

question 84

Multiple Choice

Which of the following statements is correct?

• A) Monopoly firms tend to be more internally efficient than competitive firms because they have a single goal of profit maximization.
• B) Monopoly firms are sheltered from competitive forces, and such an environment makes them subject to X-inefficiency.
• C) Monopoly firms are in industries with low barriers to entry that tend to lower the cost of producing products.
• D) Competitive firms tend to be more efficient than monopolist firms because they maximize per unit profits, not total profits.

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Definitions:

Accounts

An explanation or report about events or actions, often used in accounting and finance to reflect financial transactions.

Sociologists

Scholars who study society and social behavior by examining the groups, institutions, and processes that people develop and participate in.

Ethnomethodologists

Researchers who study the ways in which people create, maintain, and understand their social realities through everyday practices.

External Constraints

Factors outside an individual's immediate control that limit or influence their actions and decisions.