Monopolistic Competition Is an Inefficient Market Structure Because

question 487

Multiple Choice

Monopolistic competition is an inefficient market structure because

• A)marginal revenue equals marginal cost.
• B)it has a deadweight loss, just as monopoly does.
• C)long-run profits are zero due to free entry.
• D)All of the above are correct.

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Definitions:

Physical Reaction

A bodily response to stimuli, which can include reflexes, movements, or physiological changes.

McLuhan

Marshall McLuhan, a Canadian philosopher and professor known for his work on media theory and his assertion that "the medium is the message."

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Pleasure-related chemicals are neurotransmitters in the brain, such as dopamine and serotonin, which are associated with feelings of enjoyment, happiness, and motivation.

Mass Media

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