4.1.5.10 Market structure, static eff., dynamic eff. etc

What describes the level of efficiency at one point in time?

• Dynamic efficiency

• X-inefficiency

• Static efficiency

• Allocative efficiency

Which efficiency is concerned with new technology and increases in productivity over time?

• Dynamic efficiency

• X-inefficiency

• Productive efficiency

• Static efficiency

What occurs when firms minimize their average total costs?

• Dynamic efficiency

• Allocative efficiency

• Productive efficiency

• X-inefficiency

In a perfectly competitive market, when does productive efficiency occur?

• When there is no competition

• When MC > MR

• When MC = MR

• When MR > MC

What does allocative efficiency maximize?

• Market share

• Production costs

• Consumer utility

• Total revenue

Which market condition leads to allocative efficiency?

• Monopolistic competition

• Perfect competition

• Oligopoly

• Monopoly

What is NOT a cause of x-inefficiency?

• Organizational slack

• Effective management

• Laziness

• Poor management

Why doesn't perfect competition lead to dynamic efficiency?

• Because of constant technological innovation

• Due to high supernormal profits

• Due to lack of supernormal profits

• Because firms are price takers

What is necessary for dynamic efficiency in terms of firm behavior?

• Maintaining high x-inefficiency

• Investment in research and development

• Maximizing short-term profits

• Avoiding any form of investment

Which efficiency occurs when P = MC?

• Allocative efficiency

• Productive efficiency

• Dynamic efficiency

• X-inefficiency