In which one of the following market models is X-inefficiency least likely to be present?
A)pure competition
B)oligopoly
C)monopolistic competition
D)pure monopoly

Question

Quizplus · Accepted Answer

X-inefficiency is least likely to be present in pure competition because firms in a perfectly competitive market face intense competition, which forces them to operate at maximum efficiency to survive.

In Which One of the Following Market Models Is X-Inefficiency