It has been argued that as a result of not producing the quantity of output where unit cost is minimized, the monopolistic competitive firm charges too __________ a price and produces too __________ output.
A)high; little
B)low; little
C)high; much
D)low; much

Question

Quizplus · Accepted Answer

Monopolistic competitive firms do not produce at the minimum of the average cost curve, leading to higher prices and lower output compared to perfect competition.

It Has Been Argued That as a Result of Not