A Monopolistically Competitive Market Could Be Considered Inefficient Because

question 106

Multiple Choice

A monopolistically competitive market could be considered inefficient because

• A)marginal revenue exceeds average revenue.
• B)price exceeds marginal cost.
• C)the efficient scale of production is only achieved in the long run, not in the short run.
• D)markup pricing does not occur in any other market structure.

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Definitions:

Short-Term Orientation

A cultural or individual preference for immediate outcomes and gratification, focusing on the present rather than the future.

Future Rewards

pertains to benefits or recognitions that are anticipated in the future as a result of specific actions or behaviors today.

Social Obligations

Duties or responsibilities that individuals are expected to fulfill in their interactions with other members of society.

Mores

Deeply ingrained cultural norms or moral views that dictate what is considered right and wrong within a society.