From the Viewpoint of Economic Efficiency, When Competitive Forces in an Industry

question 108

Multiple Choice

From the viewpoint of economic efficiency, when competitive forces in an industry are weak, market allocation will often lead to

• A) an output of the product that exceeds the amount consistent with ideal economic efficiency.
• B) an output of the product that is less than the amount consistent with ideal economic efficiency.
• C) an output of the product that equals the amount consistent with ideal economic efficiency.
• D) product prices that are below the cost of production.

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Definitions:

Fraud

A deliberate act of deception intended for personal gain or to cause a loss to another party.

Whistle-Blowing

Employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization.

Faulty Materials

Substandard or defective supplies used in the production process.