A Monopolistically Competitive Firm Is Inefficient Because the Firm

question 152

Multiple Choice

A monopolistically competitive firm is inefficient because the firm

• A) earns positive economic profit in the long run.
• B) is producing at an output amount that corresponds to marginal cost equal to price.
• C) is not maximizing its profit.
• D) produces an output where average total cost is not minimum.
• E) produces where price is equal to minimum average total cost.