Why Could a Monopolistically Competitive Market Be Considered Inefficient

question 188

Multiple Choice

Why could a monopolistically competitive market be considered inefficient

• A)because marginal revenue exceeds average revenue
• B)because price exceeds marginal cost
• C)because efficient scale is realized in the long run, but not in the short run
• D)because markup pricing does not occur in any other market structure

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Definitions:

Strategic Plans

Forward-looking plans that outline an organization's goals and define the strategy and actions required to achieve them.

Tactical Plans

Short-term, specific plans created to implement the strategies of an organization, generally focusing on achieving specific goals within a one to three-year period.

Goals Characteristics

The attributes that make goals effective, such as being specific, measurable, attainable, relevant, and time-bound (SMART criteria).

Participatory Planning

A planning approach that actively involves all stakeholders in the decision-making process, ensuring their opinions and needs are considered in the development of plans and policies.