X-Inefficiency Refers to the Situation in Which

question 29

Multiple Choice

X-inefficiency refers to the situation in which:

• A)highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits.
• B)firms are unable to minimize their costs of production because there is no potential for input substitution.
• C)firms that use labor-intensive production methods tend to be less efficient than firms that use capital-intensive production methods.
• D)firms with market power have less incentive to minimize their costs of production than more competitive firms.

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Definitions:

Unintentional

Actions or outcomes occurring without intention, plan, or deliberate cause, often resulting in unexpected consequences.

Computer Crimes

Illegal activities conducted through the use of computers or the internet, including hacking, identity theft, and unauthorized data access.

Billions

A numeral representing the number 1,000,000,000 or a vast quantity of something.

Patent

A document that grants the holder exclusive rights on an invention or process for a specified period of time, currently 20 years.