Which of the Following Is NOT Regarded as a Source

question 25

Multiple Choice

Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?

• A) The fact that price exceeds marginal cost
• B) Excess capacity
• C) Product diversity
• D) The fact that long-run average cost is not minimized
• E) all of the above

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Definitions:

Occupational Licensing Laws

Regulations that require individuals to obtain permission, usually in the form of a license, before they can legally work in certain professions.

Labor Markets

The supply and demand for labor, where employers seek to hire workers and workers seek employment.

Competency

An individual's ability or skill in performing a task effectively.

Occupational Licensing

A regulatory process requiring individuals to secure a professional license before practicing certain trades or professions, often aimed at ensuring quality and safety.