In What Way Does Long-Run Equilibrium Under Monopolistic Competition Differ

question 60

Multiple Choice

In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?

• A)Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency.
• B)The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product.
• C)Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
• D)Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency.

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Definitions:

General Managers

Individuals responsible for managing and overseeing all operational aspects of an organization, making decisions that affect its direction and success.

Major Parts

Primary or most important components or sections of an object, system, or concept.

Organisation

An entity comprising multiple people, such as a company or business, that has a particular purpose and structured system for achieving its goals.

Cost Containment

Strategies and actions taken by an organization to control or reduce its expenses without compromising the quality of its products or services.