Compared to a purely competitive firm in long-run equilibrium, the monopolistic competitor has a
A) lower price and lower output.
B) higher price and lower output.
C) higher price and higher output.
D) price and output that may be higher or lower.
Correct Answer:
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Q216: Q217: Assume that the short-run cost and demand Q218: Q219: Assume that the short-run cost and demand Q220: Q222: In monopolistically competitive markets, resources are Q223: At long-run equilibrium in monopolistic competition, there Q224: In the long run, the representative firm Q225: Excess capacity implies Q226: 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.
