Which of the Following Statements Regarding the Efficiency of Monopolistic

question 8

Multiple Choice

Which of the following statements regarding the efficiency of monopolistic competition is FALSE?

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

---

Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a future date or on demand.

Interest Due

The amount of interest payment that is owed but not yet paid by a borrower to a lender at a given point in time.

Intermediate Calculations

Calculations performed between the initial and final stages of a financial or statistical analysis to derive a specific outcome or insight.

Final Answer

The ultimate conclusion or decision reached after consideration.