At long-run equilibrium in monopolistic competition, there is
A) allocative efficiency but not productive efficiency.
B) productive efficiency but not allocative efficiency.
C) both allocative and productive efficiency.
D) neither allocative nor productive efficiency.
Correct Answer:
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Q218: 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 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)overallocated because
A)productive inefficiency.
B)allocative inefficiency.
C)productive efficiency.
D)allocative efficiency.
