Possible reasons for X-inefficiency include the following, except
A)managers having other goals besides maximizing profits.
B)workers being poorly motivated or poorly supervised.
C)costs of materials rising due to tight supply conditions.
D)the firm being lethargic due to the absence of competition.

Question

Quizplus · Accepted Answer

X-inefficiency refers to inefficiencies in a firm's operations due to factors internal to the firm, such as management practices, worker motivation, and the level of competition. Rising costs of materials due to tight supply conditions (choice C) are external factors affecting the firm's costs, not related to the firm's internal operational efficiency.

Possible Reasons for X-Inefficiency Include the Following, Except