It Has Been Argued That in the Long Run Monopolistic

question 121

Multiple Choice

It has been argued that in the long run monopolistic competition is inefficient because

• A) there are too many firms, each with excess capacity, producing too little output.
• B) there are few many firms, each with excess capacity, producing too much output.
• C) minimum average total costs are achieved but price exceeds marginal cost.
• D) minimum average total costs are not achieved and marginal cost exceeds price.

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Definitions:

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or calculation.

Null Hypothesis

A hypothesis stating there is no significant difference or effect, serving as the default assumption in hypothesis testing.

T Test

A statistical test used to compare the means of two groups to see if there is a significant difference between them, often used when dealing with small sample sizes.

Research Hypothesis

A speculative statement about the relationship between two or more variables that is tested through research.