In monopolistically competitive markets, resources are
A) overallocated because long-run equilibrium occurs where price exceeds marginal cost.
B) underallocated because long-run equilibrium occurs where price exceeds marginal cost.
C) overallocated because long-run equilibrium occurs where marginal cost exceeds price.
D) underallocated because long-run equilibrium occurs where marginal cost exceeds price.
Correct Answer:
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Q217: Assume that the short-run cost and demand
Q218: Q219: Assume that the short-run cost and demand Q220: Q221: Compared to a purely competitive firm in Q223: At long-run equilibrium in monopolistic competition, there Q224: In the long run, the representative firm Q225: Excess capacity implies 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
A)productive inefficiency.
B)allocative inefficiency.
C)productive efficiency.
D)allocative efficiency.
