Economics 9708 · AS & A Level · 7.6

7.6 — practice question

A privately owned sole supplier of gas is operating in an unregulated market where barriers to entering and leaving are high. Which row is most likely to show the economic efficiency that results from the firm’s position in this market?

  • Aproductive efficiency: no; allocative efficiency: no; dynamic efficiency: no
  • Bproductive efficiency: no; allocative efficiency: no; dynamic efficiency: yes
  • Cproductive efficiency: no; allocative efficiency: yes; dynamic efficiency: yes
  • Dproductive efficiency: yes; allocative efficiency: no; dynamic efficiency: yes

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