Monopolistic Competition Is Considered Inefficient Because

question 33

Multiple Choice

Monopolistic competition is considered inefficient because

• A)price exceeds marginal cost.
• B)output is excessive.
• C)long-run profits are positive.
• D)barriers to entry limit the number of firms in the market.

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting neural signals.

Decision Maker

An individual or group responsible for making choices or judgments.

GABA

Gamma-aminobutyric acid; a neurotransmitter in the brain that plays a key role in inhibiting nerve transmission, and hence, regulates anxiety.

Glutamate

A major neurotransmitter in the brain, playing a key role in learning, memory and the regulation of the nervous system.