Is a Monopolistically Competitive Firm Allocatively Efficient

question 216

Multiple Choice

Is a monopolistically competitive firm allocatively efficient?

• A)No, because it does not produce at minimum average total cost.
• B)Yes, because it produces where marginal cost equals marginal revenue.
• C)No, because price is greater than marginal cost.
• D)Yes, because price equals average total cost.

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Definitions:

Msec

Abbreviation for milliseconds, a unit of time equal to one thousandth of a second.

Reaction Time

The amount of time it takes to respond to a stimulus, critical in many aspects of human performance and safety.

Learning Process

A series of activities or steps taken by an organism to acquire or modify knowledge, behaviors, skills, values, or preferences.

Spinal Reflex Arc

A neural pathway that controls an immediate response to a specific stimulus without conscious brain involvement.