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:

Social Facts

Durkheim's concept for societal norms, values, structures, and institutions that exert social control and influence individual behavior.

Empirically Studied

Investigated through the use of observation or experience rather than theory or pure logic, often involving systematic collection and analysis of data.

Coerces

To compel or force someone to do something by using pressure, threats, or intimidation, often implying a lack of free will or choice.

Mechanical Society

A term from Émile Durkheim describing traditional societies where social cohesion and integration come from the homogeneity of individuals’ beliefs, values, and practices.