What Condition May Provide for a Relatively Small Degree of Inefficiency

question 58

Multiple Choice

What condition may provide for a relatively small degree of inefficiency under monopolistic competition?

• A) There is a single seller and no product differentiation.
• B) The marginal cost of production is less than the market price.
• C) The demand curve is relatively elastic so that the price is near the long-run minimum average cost.
• D) There is only one buyer in the market.

---

Definitions:

Urban Areas

Regions characterized by high human population density and vast human-built features in comparison to areas surrounding them, typically cities and towns.

Immigration

The action of moving to a foreign country or region to live, often permanently.

Urban Growth

The expansion of cities and towns as a result of population increase and infrastructural development, often impacting the surrounding environment and agricultural lands.

Developing Countries

Countries characterized by less industrialization, a lower quality of life, and typically lower scores on the Human Development Index (HDI) than those seen in developed nations.