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The Diagram Below Shows Demand and Cost Curves for a Monopolistically

Question 68

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The diagram below shows demand and cost curves for a monopolistically competitive firm. The diagram below shows demand and cost curves for a monopolistically competitive firm. FIGURE 11-3 -Refer to Figure 11-3.A monopolistically competitive firm is said to be inefficient because in the long-run equilibrium A) MC is greater than LRAC. B) MC is greater than price. C) price is greater than MC at Q<sub>1</sub>. D) price is greater than LRAC at Q<sub>1</sub>. E) LRAC at Q<sub>1 </sub>is not at its minimum. FIGURE 11-3
-Refer to Figure 11-3.A monopolistically competitive firm is said to be inefficient because in the long-run equilibrium


A) MC is greater than LRAC.
B) MC is greater than price.
C) price is greater than MC at Q1.
D) price is greater than LRAC at Q1.
E) LRAC at Q1 is not at its minimum.

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