We know that monopolistically competitive firms prevent the efficient use of resources because they produce where

Question

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Monopolistically competitive firms prevent the efficient use of resources because they produce where the price (P) is greater than the marginal cost (MC) of production. This indicates that the firm is not producing at the point where the price equals the marginal cost, which is considered the condition for allocative efficiency in perfect competition.

We Know That Monopolistically Competitive Firms Prevent the Efficient Use