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.

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Definitions:

Revenue

The income that a business earns from its normal business activities, usually from the sale of goods and services to customers.

Income

Money received, especially on a regular basis, for work or through investments.

Goods

Physical items that are produced for sale or use, ranging from commodities and raw materials to finished products.

Brokers

Individuals or entities that act as intermediaries between buyers and sellers in various transactions, often in markets such as real estate, stocks, or insurance.