One Source of Economic Inefficiency from Monopolistic Competition Is

question 94

Multiple Choice

One source of economic inefficiency from monopolistic competition is

• A) markup.
• B) less variety for consumers.
• C) more variety for consumers.
• D) higher costs because firms can enter the industry.
• E) lower marginal costs,but higher average costs than with perfect competition.

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Definitions:

Libido

According to Freud, psychical energy derived from physiological drives.

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctive drive to seek pleasure and avoid pain.

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id's desires in realistic and socially appropriate ways.

Morality Principle

The concept that individuals have an inherent understanding of right and wrong that guides their behavior.