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:

Customer Intimacy

A business strategy focusing on personalized service and building close relationships with customers to meet their specific needs.

Competitive Advantage

A condition or circumstance that puts a company in a favourable or superior business position compared to its competitors.

Industry Knowledge

Understanding and information related to a specific industry, including its trends, key players, and dynamics that influence business operations.

Business Income

This refers to the earnings or revenue generated from the business's operations, after subtracting the costs and expenses associated with producing and selling the business's goods or services.