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:

Ionic

Relating to ions or the formation of ions by the gaining or losing of electrons, often discussed in the context of chemical bonds.

Metallic

Pertaining to, composed of, or resembling metal; having the characteristics or qualities of metals.

Intermolecular

Relating to the forces or interactions between molecules, which determine phase states and properties of substances.

Hydrogen Bonds

These are weak bonds between molecules or within molecules that result from the attraction of a hydrogen atom to a highly electronegative element like oxygen or nitrogen.