Monopolistic Competition Is Inefficient Because

question 105

Multiple Choice

Monopolistic competition is inefficient because

• A) firms earn positive economic profits.
• B) the firms' marginal costs and marginal revenues are not equal.
• C) price is not equal to the minimum average total cost.
• D) entry is difficult.
• E) the price is equal to the minimum average total cost.

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Definitions:

Core

The central or most important part of something, especially the foundational or essential parts that define its nature.

Major Sources

Principal or most important origins or points of supply, typically referring to information, materials, or resources.

Glocalization

A combination of globalization and localization, referring to the adaptation of global products, ideas, and cultural practices to local contexts and markets.

Homogenization

The process of making things uniform or similar, often used in cultural contexts to describe the reduction of cultural diversity through the dominance of particular cultural norms.