Which of the Following Statements Regarding Monopolistic Competition Is FALSE

question 74

Multiple Choice

Which of the following statements regarding monopolistic competition is FALSE?

• A)Resources are used efficiently when marginal social benefit equals marginal social cost.
• B)A greater degree of product variety creates a loss because the quantity produced is less than the efficient quantity.
• C)Monopolistic competition is definitely inefficient because price exceeds marginal cost.
• D)Compared to a situation with total product uniformity,monopolist competition might be efficient.
• E)A firm in monopolistic competition produces a quantity that is less than the efficient scale.

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Definitions:

Failures

Instances of inability to perform a task or achieve a goal as expected or required.

Adaptive Coping

Strategies that individuals use to effectively manage or reduce stress through positive actions, cognitive restructuring, or problem-solving techniques.

Lease

A contractual agreement by which one party conveys property, land, services, etc., to another for a specified time, usually in return for a periodic payment.

Compromise

A way of resolving disagreements in which each party gives up something but also gains something in return.