One Source of Inefficiency in Monopolistic Competition Is That

question 22

Multiple Choice

One source of inefficiency in monopolistic competition is that

• A) since price is above marginal cost, surplus is redistributed from buyers to sellers.
• B) monopolistically competitive firms earn economic profits in the long run.
• C) monopolistically competitive firms produce beyond their efficient scale.
• D) since price is above marginal cost, some units are not produced that buyer's value in excess of the cost of production and this causes a deadweight loss.

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Definitions:

Union Security

Arrangements within labor agreements that ensure the financial and organizational stability of the workers' union, often through membership mandates or dues requirements.

Grievance Procedure

A formal process through which employees can report complaints or concerns regarding work conditions or treatment.

Settlement

The resolution or agreement reached in a dispute, negotiation, or legal case outside of or within a court process.

Turnover

Denotes the speed at which staff members exit an organization and are substituted by new hires.