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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