A Firm in Monopolistic Competition Is

question 170

Multiple Choice

A firm in monopolistic competition is

• A) efficient because in the long run it makes zero economic profit.
• B) efficient because it produces at the minimum average total cost.
• C) inefficient because price exceeds marginal cost.
• D) efficient because of the ease of entry.
• E) efficient because it produces where MR = MC.

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Definitions:

General Equilibrium

A state in an economy where supply and demand are balanced across all markets simultaneously, leading to an allocation of resources that is optimal under given conditions.

Secondary Effects

The unintended outcomes of a policy, action, or event that may develop in addition to the primary effects.

International Economics

A branch of economics that studies how countries interact through trade, finance, and economic policies.

Brazilian Soybean

Refers to soybeans produced in Brazil, one of the world's largest producers and exporters of soybeans.