Monopolistic competition is inefficient because
A) firms earn positive economic profits.
B) the firms' marginal costs and marginal revenues are not equal.
C) price is not equal to the minimum average total cost.
D) entry is difficult.
E) the price is equal to the minimum average total cost.
Correct Answer:
Verified
Q89: The difference between price and marginal cost
Q90: In a monopolistically competitive industry,price
A) will be
Q91: You operate a monopolistically competitive firm and
Q92: A competitive firm would have
A) more elastic
Q93: A monopolistically competitive firm usually charges more
Q95: Perfect competition and monopolistic competition are similar
Q96: Both perfectly competitive and monopolistically competitive industries
Q97: The concept of markup under monopolistic competition
Q98: One could argue correctly that
A) all firms
Q99: A generic product would be best described
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