A Monopolistically Competitive Firm Is Inefficient Because the Firm

question 114

Multiple Choice

A monopolistically competitive firm is inefficient because the firm

• A) makes positive economic profit in the long run.
• B) is producing at an output where marginal cost equals price.
• C) is not maximizing its profits.
• D) produces a product identical to that of its competitors.
• E) produces at an output level where average total cost is not at its minimum.