A Monopolistically Competitive Market Could Be Considered Inefficient Because

question 106

Multiple Choice

A monopolistically competitive market could be considered inefficient because

• A)marginal revenue exceeds average revenue.
• B)price exceeds marginal cost.
• C)the efficient scale of production is only achieved in the long run, not in the short run.
• D)markup pricing does not occur in any other market structure.

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Definitions:

Intercalated Discs

Specialized junctions between cardiac muscle cells that facilitate the synchronized contraction of the heart.

Excitation-Contraction Coupling

The physiological process of converting an electrical stimulus to a mechanical response, essential for muscle contraction.

Action Potential

A rapid and temporary electrical charge that travels along the membrane of a neuron, initiating the transmission of a nerve impulse.

Sarcolemma

The thin, plasmalemma (plasma membrane) surrounding a muscle fiber, crucial for transmitting signals and coordinating contractions.