Even Though Monopolistic Competition Results in Inefficiency,it Does Have Which

question 292

Multiple Choice

Even though monopolistic competition results in inefficiency,it does have which of the following benefits for society?

• A)Firms earn zero economic profit in the long run.
• B)Firms can earn 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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