Monopolistically Competitive Industries Are Inefficient Because

question 164

Multiple Choice

Monopolistically competitive industries are inefficient because

• A) they realize diseconomies of scale.
• B) advertising costs retard technological advance and product development.
• C) they are overpopulated with firms whose plants are underutilized.
• D) monopolistically competitive sellers engage in misleading advertising.

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Definitions:

Banquet

A large formal meal for many people, often involving multiple courses and a set menu, typically held for a special occasion or celebration.

Etruscan Cemetery

An ancient burial site associated with the Etruscans, a pre-Roman civilization in Italy, known for their richly decorated tombs and funerary art.

Cerveteri

An ancient Etruscan city in Italy, renowned for its necropolises with tombs carved into the rock and impressive burial mounds.

Tumulus

An ancient burial mound of earth and stones placed over a grave or graves.