It Has Been Argued That in the Long Run Monopolistic

question 121

Multiple Choice

It has been argued that in the long run monopolistic competition is inefficient because

• A) there are too many firms, each with excess capacity, producing too little output.
• B) there are few many firms, each with excess capacity, producing too much output.
• C) minimum average total costs are achieved but price exceeds marginal cost.
• D) minimum average total costs are not achieved and marginal cost exceeds price.

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