Which of the Following Is True with Regard to Monopolistically

question 41

Multiple Choice

Which of the following is true with regard to monopolistically competitive firms' scale of production and pricing decisions? Monopolistically competitive firms produce

• A) at the efficient scale and charge a price equal to marginal cost.
• B) at the efficient scale and charge a price above marginal cost.
• C) with excess capacity and charge a price above marginal cost.
• D) with excess capacity and charge a price equal to marginal cost.

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Definitions:

Sick Leave

Paid or unpaid time off work granted by employers to employees due to illness or injury.

Labor Unions

Employee organizations formed to deal with employers for achieving better pay, hours, and working conditions.