Which of the Following Is True About a Monopolistically Competitive

question 142

Multiple Choice

Which of the following is true about a monopolistically competitive industry?

• A)Marginal cost pricing occurs.
• B)There is excess capacity.
• C)Resources are allocated efficiently.
• D)It produces at the minimum of ATC.

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Definitions:

Perspective

A particular attitude towards or way of regarding something; a point of view.

Customer

A customer is an individual or entity that purchases goods or services from another individual or entity, often for personal use.

Unmet Needs

Desires or requirements of consumers that have not been addressed or satisfied by existing products or services in the market.

Business Models

The strategic plan for how a company will generate revenue, make a profit, and sustain its operations, outlining sources of income, target customer base, products, and details of financing.