It Has Been Argued That in the Long Run Monopolistic

question 121

Multiple Choice

It has been argued that in the long run monopolistic competition is inefficient because

• A) there are too many firms, each with excess capacity, producing too little output.
• B) there are few many firms, each with excess capacity, producing too much output.
• C) minimum average total costs are achieved but price exceeds marginal cost.
• D) minimum average total costs are not achieved and marginal cost exceeds price.

---

Definitions:

Space Shuttle Challenger

The NASA space shuttle that tragically broke apart shortly after its launch in 1986 due to a failure in one of its solid rocket boosters.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.

Flashbulb Memory

Highly detailed and vivid memory of an emotionally significant moment or event.

First Grade

The initial grade of primary education in many schooling systems, following kindergarten and typically involving children aged six to seven.