Under Pure Competition, in the Long Run

question 176

Multiple Choice

Under pure competition, in the long run

• A) neither allocative efficiency nor productive efficiency is achieved.
• B) both allocative efficiency and productive efficiency are achieved.
• C) productive efficiency is achieved, but allocative efficiency is not.
• D) allocative efficiency is achieved, but productive efficiency is not.

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Definitions:

Insourcing

The practice of using an organization's internal resources to complete tasks or projects that could be outsourced to external providers.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees.

Offshoring

Moving production outside the home country.

Offset Agreement

An agreement wherein a supplier agrees to buy products from the party to whom it is selling in order to win the buyer as a customer and “offset” the buyer’s production costs.