Productive Efficiency Does Not Hold for a Profit-Maximising, Monopolistically Competitive

question 91

True/False

Productive efficiency does not hold for a profit-maximising, monopolistically competitive firm in the long-run equilibrium because the firm operates along the diseconomies-of-scale region of its average total cost curve.

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Definitions:

Sales Contract

A legal agreement between two parties for the exchange of goods, services, or property for payment.

Buyer Payment

The act of providing money or consideration by a buyer to a seller in exchange for goods, services, or property.

Depositary Bank

A financial institution that holds assets or securities in custody for its clients, facilitating trading and safekeeping of these assets.

Payor Bank

The bank on which a check is drawn, responsible for paying the check when it is presented for payment.