Consider the Efficiency of Various Market Structures

question 84

Multiple Choice

Consider the efficiency of various market structures.In the absence of other market failures,allocative efficiency is achieved only under perfect competition because only this market structure results in

• A)zero long-run profits.
• B)P = MC.
• C)complete freedom of entry and exit.
• D)maximization of profits through competition.
• E)productive efficiency.

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Definitions:

High Performance Work Systems

Organizational approaches designed to enhance employee effectiveness and productivity through improved work practices and technologies.

Employee Involvement

Programs and practices that encourage employees to contribute ideas and participate in decisions that affect their work and the organization.

Reengineering

The radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, and quality.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or implementing significant process changes.