Is a Monopolistically Competitive Firm Productively Efficient

question 3

Multiple Choice

Is a monopolistically competitive firm productively efficient?

• A)No, because it does not produce at minimum average total cost.
• B)Yes, because it produces where marginal cost equals marginal revenue.
• C)No, because price is greater than marginal cost.
• D)Yes, because price equals average total cost.

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Definitions:

External Locus

A belief system where an individual attributes their successes and failures to external factors and influences rather than their own efforts.

Control

The power to influence or direct people's behavior or the course of events, often studied as a trait that contributes to psychological well-being when effectively balanced.

Locus of Control

A psychological concept referring to an individual's belief about how much control they have over the outcomes of events in their lives, ranging from internal (a belief in personal control) to external (a belief that outside forces dominate).

Mental Health

A condition where an individual is in good health, acknowledges personal capabilities, handles life's usual stresses well, contributes positively to work, and actively supports the community.