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Is a Monopolistically Competitive Firm Allocatively Efficient

Question 182

Multiple Choice
Is a monopolistically competitive firm allocatively efficient? A)No, because it does not produce at minimum average total cost. B)Yes, because it produces where marginal cost equals marginal revenue. C)No, because price is greater than marginal cost. D)Yes, because price equals average total cost.

Is a monopolistically competitive firm allocatively efficient?


A) No, because it does not produce at minimum average total cost.
B) Yes, because it produces where marginal cost equals marginal revenue.
C) No, because price is greater than marginal cost.
D) Yes, because price equals average total cost.

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