A perfectly competitive firm is said to be more efficient than a monopoly firm because

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BlackTom AI · Accepted Answer

The question asks why a perfectly competitive firm is said to be more efficient than a monopoly firm. 
Option a: 'perfectly competitive firms are faced with a less elastic demand curve than monopoly firms.' In perfect competition, individual firms face a perfectly elastic (horizontal) demand curve at the market price, not a less elastic one. Monopolies face a downward-sloping demand curve for the whole market, so this statement is inaccurate. 
Option b: 'perfectly competitive firms produce more differentiated products than monopoly firms.' In perfect competition, products are typically homogeneous (not differentiated), while monopolies may offer unique products or branding. So this incorrect statement confuses product differentiation with competitive structure. 
Option c: 'perfectly competitive firms charge lower prices and produce more output than monopoly firms.' This aligns with standard results: many firms and free entry in perfect competition drive price down to marginal cost, leading to lower prices; due to many firms and no barriers, total industry output is higher than under a monopoly, where single seller restricts quantity to raise price. Thus this statement correctly captures the efficiency comparisons between the two market structures. 
Option d: 'perfectly competitive firms require their workers to work longer hours than monopoly firms.' There is no general claim in theory that competitive firms require longer hours; efficiency differences stem from price, output, and welfare outcomes, not uniform working hours. This is not a valid basis for saying one is more efficient. 
In summary, option c accurately describes the efficiency distinction: competitive markets produce more output at lower prices due to competition and no barriers, whereas monopoly restricts output to raise price. The other options misstate demand behavior, product differentiation, or irrelevant working-hour assumptions, which do not underpin the efficiency comparison.

A perfectly competitive firm is said to be more efficient than a monopoly firm because

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