Select the correct answer below:

Yes, increasing profit will make this firm more allocative efficient.

No$,$ increasing profit won't influence allocative efficiency.

No$,$ increasing profit will only decrease allocative$$efficiency

None of the above

No$,$ allocative efficiency only occurs in a monopoly situation with no competitors. Monopolists have more control over price, which makes a monopoly more allocatively efficient.

No$,$ allocative efficiency implies price is below marginal cost. In this example, price is above marginal cost.