Even Though Monopolistic Competition Results in Inefficiency, It Does Have

question 45

Multiple Choice

Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?

• A) Product variety benefits consumers.
• B) Firms make zero economic profit in the long run.
• C) Firms can make an economic profit in the short run.
• D) Marginal cost equals price in the long run.
• E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.

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Definitions:

Social Entities

Groups, organizations, or institutions that operate within a social context and interact according to societal norms and values.

Complete Agreement

A situation or outcome in which all parties involved fully agree on all terms and conditions, without any dissent.

Structural Capital

The non-human assets of an organization, including processes, databases, patents, and the organization's structure, which enable productivity and innovation.

Skills And Abilities

The talents and capacities individuals possess that allow them to perform tasks effectively.