Monopolistic Competition Is Judged to Be Economically Inefficient Because

question 30

Multiple Choice

Monopolistic competition is judged to be economically inefficient because

• A) firms make an economic profit in the long run.
• B) firms have deficient capacity in the long run.
• C) marginal revenue equals marginal cost.
• D) firms make zero economic profit in the long run.
• E) the price is greater than marginal cost.