In Monopolistic Competition,there Is Inefficiency Because Price Is Greater Than

question 72

Multiple Choice

In monopolistic competition,there is inefficiency because price is greater than marginal cost.What brings about this inefficiency?

• A) high concentration, as indicated by the large concentration ratio
• B) product differentiation
• C) freedom of entry and exit
• D) marginal cost rises as more output is produced
• E) the fact there are many firms in the market

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Definitions:

Continental Army

The Continental Army was the unified command structure of the thirteen colonies fighting Great Britain during the American Revolutionary War, established by the Second Continental Congress in 1775.

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A person who remained loyal to the British Crown during the American Revolutionary War, often facing social ostracism or fleeing to British territories as a result.

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