Does the Fact That Monopolistically Competitive Firms Do Not Achieve

question 171

Essay

Does the fact that monopolistically competitive firms do not achieve productive efficiency or allocative efficiency mean that there is a significant loss in consumer welfare?

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Definitions:

Moral Sentiment

An emotional response that informs or is related to one's sense of right and wrong.

Shame

A feeling resulting from the violation of a social norm.

Ethical Subjectivist

The belief that moral judgments are statements of one's feelings or attitudes, and therefore, are neither true nor false.

Right

Morally good, justified, or acceptable; also refers to a legal entitlement or privilege.