Which of these is NOT a potential source of inefficiency?
A) Monopoly
B) External benefits
C) Increasing marginal costs
D) Subsidies

Question

Quizplus · Accepted Answer

Increasing marginal costs are a natural part of production processes and do not inherently lead to market inefficiencies. They reflect the rising costs associated with increasing production and are a standard aspect of economic theory. In contrast, monopolies, external benefits, and subsidies can all lead to market failures or inefficiencies by distorting prices, production, and consumption away from optimal levels.

Which of These Is NOT a Potential Source of Inefficiency