Author Question: X-inefficiency implies: a. the practice of using less than the optimal amount of inputs for ... (Read 67 times)

809779 · **on:** Jun 30, 2018

X-inefficiency implies:
a. the practice of using less than the optimal amount of inputs for production.
b. the practice of using the lowest quantity of input to produce maximum output.
c. always producing less than the optimal amount of output.
d. excessive use of inputs relative to best-practice methods.

Question 2

Which of the following statements is true?
a. A firm that has monopoly power is a price maker.
b. A firm that has monopoly power is a price taker.
c. A firm that has monopoly power earns exorbitant profits.
d. A firm that has monopoly power has a perfectly elastic demand curve.
e. A firm that has monopoly power has a perfectly inelastic demand curve.