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15 June, 12:47

If a perfectly competitive firm and a perfectly price-discriminating monopolist face the same demand and cost curves, then a. the competitive firm will attain resource-allocative efficiency, but the monopolist will not. b. the competitive firm will attain resource-allocative efficiency, but the monopolist may or may not, depending upon the demand for its product. c. the competitive firm will not attain resource-allocative efficiency, but the monopolist will. d. both the competitive firm and the monopolist will attain resource-allocative efficiency. e. neither the competitive firm nor the monopolist will attain resource-allocative efficiency.

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  1. 15 June, 12:50
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    Answer: the correct answer is a. the competitive firm will attain resource-allocative efficiency, but the monopolist will not

    Explanation: the monopoly will not attain allocative efficiency because in theory a monopoly won't lose a single customer even if it raises prices since it is the only company in the market selling that product.
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