Which of the Following Statements Is Correct

question 84

Multiple Choice

Which of the following statements is correct?

• A) Monopoly firms tend to be more internally efficient than competitive firms because they have a single goal of profit maximization.
• B) Monopoly firms are sheltered from competitive forces, and such an environment makes them subject to X-inefficiency.
• C) Monopoly firms are in industries with low barriers to entry that tend to lower the cost of producing products.
• D) Competitive firms tend to be more efficient than monopolist firms because they maximize per unit profits, not total profits.

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Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often leading to an oversimplification of cause and effect.

Ingroup Bias

The tendency to favor one's own group over other groups, often leading to preference and loyalty towards members of the ingroup.

Bystander Effect

A phenomenon in social psychology where people are less inclined to assist a victim if there are other bystanders.

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, fostering cooperation and mutual aid.