Which are more economically efficient, perfectly competitive markets or monopolies? Compared to monopolies, perfectly competitive markets are A. less economically efficient because they result in more deadweight lossmore deadweight loss. B. more economically efficient because they result in more economic surplus. C. lessless economically efficient because they produce where marginal revenue is less thanis less than marginal cost. D. less economically efficient because they result in more economic surplusmore economic surplus. E. lessless economically efficient because they produce at higherhigher average total cost.

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?