Which one among the following pairs of type of firm and feature is <strong>NOT</strong> correctly matched?
- A. Oligopoly firm : Interdependence in decision-making
- B. Monopolistic firm : Firm is a price setter
- C. Monopoly firm : Produces an efficient level of output ✓
- D. Perfectly competitive firm : Produces socially optimum output
Correct Answer: C. Monopoly firm : Produces an efficient level of output
Explanation
A monopoly firm maximizes profit where marginal cost equals marginal revenue, leading to a restricted output level that is socially inefficient and creates a deadweight loss.
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