Monopolistic competition is characterized by i)
Efficient scale
Ii)
Markup pricing over marginal cost
Iii)
Deadweight loss
Iv)
Excess capacity
A)i) and ii) only
B)ii) and iv) only
C)i), ii), and iii) only
D)ii), iii), and iv) only

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by markup pricing over marginal cost, deadweight loss due to inefficiency, and excess capacity as firms do not produce at the lowest point on their average cost curve.

Monopolistic Competition Is Characterized by I)