Some Economists Argue That Monopolistically Competitive Markets Are Inefficient Because

question 66

Multiple Choice

Some economists argue that monopolistically competitive markets are inefficient because:

• A) the firms earn economic profits in the long run.
• B) the firms' marginal costs and marginal revenues are not always equal.
• C) firms do not produce the output rate that would minimize their average total cost.
• D) barriers to entry are high.

Recognize how attitudes and mindsets influence responses to failure and challenges.

Identify the impact of praise on mindset orientation (growth or fixed).

Appreciate the concept of metacognition and its importance in self-awareness and problem-solving.

Understand the role of mindset in entrepreneurship and entrepreneurial mindset characteristics.

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Definitions:

Regulated Monopolies

Market situations in which local, state, or federal government grants exclusive rights in a certain market to a single firm.

Economic Recession

a period of temporary economic decline characterized by a decrease in GDP, income, employment, and trade, typically lasting from six months to a year.

Communism

Economic system in which all property would be shared equally by the people of a community under the direction of a strong central government.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to firms being price takers.