Choose the Statement That Best Compares the Long-Run Equilibrium of a Competitive

question 117

Multiple Choice

Choose the statement that best compares the long-run equilibrium of a competitive industry with that in a monopolized industry (with a single price) .

• A)Resources will be allocated efficiently in both the competitive and monopolized industries.
• B)Allocative efficiency will be achieved in the competitive,but not the monopolized industry.
• C)Allocative efficiency is not possible in either industry.
• D)Allocative efficiency will be achieved in the monopolized,but not the competitive industry.
• E)It is not possible to make this comparison because firms in a competitive industry operate only in the short run.

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Definitions:

Abdominal Aorta

The continuation of the thoracic aorta that runs through the abdomen, supplying blood to the abdominal and pelvic organs and the legs.

Common Iliac Artery

A major artery in the pelvic region that splits into the internal and external iliac arteries, supplying blood to the pelvis and legs.

Bifurcation

The division of something into two branches or parts, such as the bifurcation of a blood vessel or a route.

Abdominal Aorta

The largest artery in the abdominal cavity that supplies oxygenated blood to much of the abdominal and pelvic organs and the legs.