Economists Have Long Debated Whether There Is a Significant Loss

question 47

Multiple Choice

Economists have long debated whether there is a significant loss of wellbeing to society in markets that are monopolistically competitive rather than perfectly competitive.Which of the following offers the best reason why some economists believe that monopolistically competitive markets are less efficient than perfectly competitive markets?

• A) In contrast to perfectly competitive markets, neither allocative efficiency nor productive efficiency is achieved in monopolistically competitive markets.
• B) In contrast to perfectly competitive markets, firms in monopolistically competitive markets earn economic profits in long-run equilibrium.
• C) In contrast to perfectly competitive markets, firms in monopolistically competitive markets do not produce where price equals average total cost in long-run equilibrium.
• D) In contrast to perfectly competitive markets, firms in monopolistically competitive markets can charge a price greater than average total cost in the short run.

Determine comparative performance across different examinations using standard deviation and mean.

Interpret the probability of a Z-score in a standard normal distribution.

Understand the relationship between percentiles and Z-scores in normal distributions.

Grasp the concepts of mean, standard deviation, and variance in the context of normal distributions.

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Definitions:

Social Learning

A theory that proposes people can learn new behaviors and information by observing others, also known as observational learning.

Overt Responses

Visible or externally observable actions or reactions to stimuli.

Sexual and Aggressive

Terms describing fundamental drives in human behavior, often associated with Freud's theories, focusing on the instinctual aspects of personality.

Higher Needs

In Maslow's hierarchy, refers to the more complex emotional or psychological desires such as esteem, respect, and self-actualization.