Even Though Monopolistic Competition Results in Inefficiency,it Does Have Which

question 32

Multiple Choice

Even though monopolistic competition results in inefficiency,it does have which of the following benefits for society?

• A) Firms make zero economic profit in the long run.
• B) Firms can make an economic profit in the short run.
• C) Product variety benefits consumers.
• D) Marginal cost equals price in the long run.
• E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.

---

Definitions:

Departmentalization

The grouping of jobs into working units usually called departments, units, groups, or divisions.