X-inefficiency refers to the situation in which: A) highly competitiv

X-inefficiency refers to the situation in which:

A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits.
B) firms are unable to minimize their costs of production because there is no potential for input substitution.
C) firms that use labor-intensive production methods tend to be less efficient than firms that use capital-intensive production methods.
D) firms with market power have less incentive to minimize their costs of production than more competitive firms.

ANSWER

D