Even though monopolistic competition results in inefficiency,it does have which of the following benefits for society?
A) Firms earn zero economic profit in the long run.
B) Firms can earn an economic profit in the short run.
C) Product variety benefits consumers.
D) Marginal cost equals price in the long run.
E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.
Correct Answer:
Verified
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