Under Pure Competition, in the Long Run

question 9

Multiple Choice

Under pure competition, in the long run

• A)neither allocative efficiency nor productive efficiency is achieved.
• B)both allocative efficiency and productive efficiency are achieved.
• C)productive efficiency is achieved, but allocative efficiency is not.
• D)allocative efficiency is achieved, but productive efficiency is not.

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Definitions:

Public Choice Theory

A field of economics that studies how economic decisions and policies are influenced by the behavior and incentives of individuals and institutions within the public sector.

Legislation

The process of making or enacting laws by a governing body or legislative authority.

Voting Patterns

Refers to the trends and tendencies in how different groups of people vote in elections, influenced by factors such as demographics, socioeconomic status, and political beliefs.

Regulatory Capture

A situation where regulatory agencies are dominated by the industries or interests they are charged with regulating, leading to decision-making that benefits the industry at the expense of the public interest.