Monopolistic Competition Is Judged to Be Economically Inefficient Because

question 151

Multiple Choice

Monopolistic competition is judged to be economically inefficient because

• A) the price is greater than marginal cost.
• B) firms make zero economic profit in the long run.
• C) marginal revenue equals marginal cost.
• D) firms have deficient capacity in the long run.
• E) firms make an economic profit in the long run.

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Definitions:

Planter Elites

Refers to the wealthy and powerful landowners in agricultural societies, especially in the American South, who owned large plantations and slaves.

Colonial Society

The social, economic, and political structures established by European colonies in the Americas, characterized by distinct class systems, economies based on agriculture and trade, and diverse cultures.

Charleston

A historic port city in South Carolina, known for its rich history, well-preserved architecture, and role in both the American Revolution and Civil War.

Aristocrats

Individuals of noble status or high social rank, often possessing significant wealth, influence, or hereditary titles.