Some Economists Have Argued That Competitive Price-Searcher Industries Are Allocatively

question 206

Multiple Choice

Some economists have argued that competitive price-searcher industries are allocatively inefficient relative to price-taker industries because

• A) unlike price takers, price searchers fail to produce at the point where marginal revenue is equal to marginal cost.
• B) competition forces price takers to find the most efficient method of production, whereas product differentiation allows competitive price searchers to stay in business even when their methods of production are inefficient.
• C) unlike price takers, price searchers do not produce at the minimum of their average total cost curves.
• D) price searchers need to pay higher salaries to their managers because of the greater amount of entrepreneurship required in price-searcher industries.

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Definitions:

Enhancer Elements

Short regions of DNA that can increase the likelihood of transcription of particular genes by interacting with specific proteins.

Regulation of Transcription

The process of controlling the rate and manner in which genetic information is transcribed from DNA to mRNA, influencing gene expression.

mRNA Processing

A series of modifications made to mRNA molecules following transcription, including splicing, capping, and polyadenylation, which prepare mRNA for translation.

Chromatin

A complex of DNA and protein found in the nucleus of cells, which condenses to form chromosomes during cell division.