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:

Draining Blood

The process of removing blood from the body, typically done for medical reasons such as to relieve pressure from a hematoma or in therapeutic phlebotomy.

Diastolic Pressure

The lower number in a blood pressure reading, representing the pressure in the arteries when the heart rests between beats.

Systolic Pressure

The highest blood pressure measured in the arteries during the contraction phase of the heart cycle.

Korotkoff Sounds

Sounds heard over an artery when blood pressure is determined by the auscultatory method; caused by turbulent flow of blood.