1. Allocative efficiency takes place in any market wherever

A) MR = ATC.
B) MR = MC.
C) P = D.
D) P = MC.
E) MC = AVC.

2. All of the following describe allocative efficiency for a monopoly EXCEPT:

A) P = MC.
B) D = MC.
C) AR = MC.
D) MR = MC.
E) TR > TC by the greatest amount.

3. Which of the following statement(s) is/are true regarding a monopoly?

i) produces on the elastic portion of D curve
ii) is allocatively efficient
iii) produces the Q where MR = MC.
iv) produces more Q than a PC firm would
v) charges a higher P than a PC firm would

A) i) and iii) only
B) i), iii), and v) only
C) iii), iv), and v) only
D) iii) and iv) only
E) iii) only