Question

X-inefficiency refers to a situation in which a firm: Group of answer choices fails to realize all existing economies of scale. encounters diseconomies of scale. fails to achieve the minimum average total costs attainable at each level of output. is not as technologically progressive as it might be.

Answer 1

Answer:

fails to achieve the minimum average total costs attainable at each level of output.

Explanation:

X Inefficiency do take place in a firm when there is little or no incentive in controlling costs. As a result of this average cost of production will go up than necessary. And as a result of lack of incentives, technically, the firm will be far from efficient. It should be noted that X-inefficiency could be described as a situation in which a firm fails to achieve the minimum average total costs attainable at each level of output.