Monopolistically Competitive Firms Prevent the Efficient Use of Resources Because

question 3

Multiple Choice

Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium

• A)price equals marginal cost.
• B)price is greater than marginal cost.
• C)price is less than marginal cost.
• D)marginal cost is less than average total cost.

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Definitions:

Sales Differential

Sales differential is the difference in sales volume between a company’s actual sales and a predetermined benchmark, such as past sales performance or market expectations.

Core Value

Fundamental beliefs or principles that guide an organization's actions and decision-making.

IBM

International Business Machines Corporation, a global technology company known for its computer hardware, software, and IT services.

Planning Gap

The difference between future desired performance and the projection of future performance, if current operations continue, often leading to the development of strategies to bridge the gap.