In Principle,a Comparison of the Long-Run Equilibrium of Competitive and (Single-Price)monopoly

question 36

Multiple Choice

In principle,a comparison of the long-run equilibrium of competitive and (single-price) monopoly industries leads to the following conclusion:

• A)both the competitive industry and the monopoly will allocate resources efficiently.
• B)the competitive industry is consistent with allocative efficiency whereas the monopoly is not.
• C)neither industry is capable of allocative efficiency.
• D)the competitive industry will achieve productive efficiency but the monopoly will not.
• E)both the competitive industry and the monopoly will allocate resources inefficiently.

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Definitions:

Profit Orientation

A business approach focused on maximizing financial gains.

Social Enterprising

Business activities that are primarily focused on meeting social objectives, where profits are often reinvested into social causes.

Timmons Model

A model of entrepreneurship that emphasizes the dynamic balance between the entrepreneur, the opportunity, and the resources needed.

Entrepreneurial Process

The journey of identifying a business opportunity, resources acquisition, and the management of growing the business venture.