Comparing a Perfectly Competitive Market to a Single-Price Monopoly with the Same

question 117

Multiple Choice

Comparing a perfectly competitive market to a single-price monopoly with the same costs,we see that

• A) both markets are equally efficient in their use of resources.
• B) the monopoly market always is more efficient in the use of resources.
• C) the perfectly competitive market achieves efficiency in resource use while the monopoly market does not.
• D) the monopoly market achieves efficiency in resource use while perfectly competitive market does not.
• E) None of the above answers is correct because comparing a perfectly competitive market to a monopoly is impossible.

---

Definitions:

Belgian Frontier

The international border of Belgium with its neighboring countries, which has been a strategic and economic consideration throughout history.

Mersel-Kébir

A naval engagement off the coast of Algeria in 1940, where the British Royal Navy attacked French Navy ships to prevent them from potentially falling into German hands during World War II.

Neville Chamberlain

Neville Chamberlain was a British prime minister best known for his policy of "appeasement" toward Adolf Hitler's Germany in the lead-up to World War II.