Comparing a perfectly competitive market to a single-price monopoly with the same costs, we see that
A) both markets are equally efficient in their use of resources.
B) the monopoly market always is more efficient in the use of resources.
C) the perfectly competitive market achieves efficiency in resource use while the monopoly market does not.
D) the monopoly market achieves efficiency in resource use while perfectly competitive market does not.
E) None of the above answers is correct because comparing a perfectly competitive market to a monopoly is impossible.
C
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Ronald Coase's study, "The Nature of the Firm," argued that firms are formed to take advantage of situations in which hierarchies are more efficient than markets
a. True b. False
Can activities like driving faster than the speed limit or driving without wearing a seat belt be considered rational behavior? Why or why not?
To understand the pressures and temptations on member firms in an oligopoly, economists have applied the game theory scenario of the ___________________, in which the gains from cooperation are larger than the rewards from pursuing self-interest.
a. Prisoner’s Dilemma b. Traveler’s Dilemma c. Platonia Dilemma d. Volunteer’s Dilemma
The lower the price, the lower the producer surplus, all else equal
a. True b. False Indicate whether the statement is true or false