Monopolistic Competition Is Inefficient Because

question 105

Multiple Choice

Monopolistic competition is inefficient because

• A) firms earn positive economic profits.
• B) the firms' marginal costs and marginal revenues are not equal.
• C) price is not equal to the minimum average total cost.
• D) entry is difficult.
• E) the price is equal to the minimum average total cost.

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Definitions:

Subtle Biases

Unconscious beliefs or prejudices that affect our understanding, actions, and decisions in an indirect way.

Underrepresented Groups

Communities or populations that have lesser representation, visibility, or voice in certain areas or sectors compared to their proportion in the general population.

Americans With Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, and transportation.

Discriminatory

Behaviors, practices, or policies that unjustly distinguish or segregate individuals based on certain characteristics.