The Output of a Monopolistically Competitive Industry Is Inefficient Because

question 17

Multiple Choice

The output of a monopolistically competitive industry is inefficient because firms:

• A)produce at the highest point on the average cost curve.
• B)do not produce at the minimum point on their average cost curve.
• C)produce at the highest point on the marginal cost curve.
• D)do not produce at the minimum point on the marginal cost curve.

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Definitions:

Ethnic Quotas

Policies or practices that allocate a certain number or percentage of positions or places to individuals from specific ethnic groups, often to correct historical discrimination or to ensure diversity.

Former Soviet Union

The group of republics that formed the Union of Soviet Socialist Republics (USSR), which existed from 1922 until its dissolution in 1991.

Reside

To live in a particular place.