A Monopolistically Competitive Firm Is Inefficient Because the Firm

question 77

Multiple Choice

A monopolistically competitive firm is inefficient because the firm:

• A)earns positive economic profit in the long run.
• B)is producing at an output where marginal cost equals price.
• C)is not maximising its profit.
• D)produces an output where average total cost is at minimum.
• E)does none of the above.

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Definitions:

Court Order

A directive issued by a judge that requires a party to do or abstain from doing something.

Attachment

The legal process of seizing a debtor's property or assets to secure or satisfy a judgment.

Enforceable

Refers to a legal agreement or obligation that can be upheld by law.

Third Parties

Individuals or entities not directly involved in a contract or legal agreement, but who may be affected by its outcomes or may hold rights or interests under it.