Refer to the Table

question 44

Multiple Choice

Refer to the table.
Suppose you are studying the optimal group size in a species. You collect the following data on the costs and benefits for each individual in groups of different sizes.
-Based on the data in the table, at what point do individuals pay more costs than they gain in benefits from group membership?

• A) Group size of 1 (individual alone)
• B) Group size of 4
• C) Group size of 8
• D) Group size of 10

---

Definitions:

X-Inefficiency

X-Inefficiency occurs when a firm fails to use its resources efficiently due to a lack of competitive pressure.

Differentiated Oligopoly

A market structure in which a few firms dominate the market by selling products that are distinct yet somewhat substitutable, focusing on product differentiation to maintain competitive advantage.

Price Leadership

An informal method that firms in an oligopoly may employ to set the price of their product: One firm (the leader) is the first to announce a change in price, and the other firms (the followers) soon announce identical or similar changes.

Kinked Demand

A market scenario where a firm's demand curve is more elastic for price increases than for price decreases due to competitive reactions.