In Monopolistic Competition,there Is Inefficiency Because Price Is Greater Than

question 72

Multiple Choice

In monopolistic competition,there is inefficiency because price is greater than marginal cost.What brings about this inefficiency?

• A) high concentration, as indicated by the large concentration ratio
• B) product differentiation
• C) freedom of entry and exit
• D) marginal cost rises as more output is produced
• E) the fact there are many firms in the market

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Definitions:

Libidinal Energy

A term primarily used in psychoanalysis to denote the instinctual sexual drive or desire that motivates human behavior.

Erogenous Zones

Areas of the body that experience heightened sensitivity and can generate sexual pleasure when stimulated.

Collective Unconscious

Jung’s hypothesized store of vague memories that represent the history of humankind.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.