Because monopolistically competitive firms charge a price that is greater than marginal cost:
A) monopolistic competition is efficient.
B) monopolistic competition is inefficient.
C) the marginal benefit to society of an additional unit of output is below its cost.
D) monopolistic competition is inefficient and the marginal benefit to society of an additional unit of output is below its cost.
Correct Answer:
Verified
Q152: Monopolistic competition in an industry will result
Q162: The excess capacity in monopolistic competition may
Q163: In long-run equilibrium in perfect competition,price is:
A)greater
Q164: Monopolistically competitive firms produce less than the
Q170: Which of the following is TRUE?
A) Monopolistic
Q171: Which of the following is TRUE of
Q173: Use the following to answer questions:
Figure: Comparing
Q174: In long-run equilibrium in monopolistic competition,marginal cost
Q177: Firm A and firm B have identical
Q180: Use the following to answer questions:
Figure: Comparing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents