There is some evidence to suggest that X-inefficiency is
A)absent whenever two or more producers are competing with one another.
B)not encountered in either competitive or monopolistic firms.
C)more likely to occur in monopolistic firms than in competitive firms.
D)more likely to occur in competitive firms than in monopolistic firms.

Question

Quizplus · Accepted Answer

X-inefficiency is more likely to occur in monopolistic firms than in competitive firms because monopolies face less pressure to minimize costs and improve efficiency due to the lack of competition.

There Is Some Evidence to Suggest That X-Inefficiency Is