In the long run, the representative firm in monopolistic competition tends to have
A) excess capacity.
B) economic profits.
C) no product differentiation.
D) a perfectly elastic demand curve.
Correct Answer:
Verified
Q219: Assume that the short-run cost and demand
Q220: Q221: Compared to a purely competitive firm in Q222: In monopolistically competitive markets, resources are Q223: At long-run equilibrium in monopolistic competition, there Q225: Excess capacity implies
A)overallocated because
A)productive inefficiency.
B)allocative inefficiency.
C)productive efficiency.
D)allocative efficiency.
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