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:

Behaviors

The way in which one acts or conducts oneself, especially towards others.

Collective Efficacy

The shared belief in the ability of a group to execute actions necessary to achieve specific objectives.

Cooperate

The act of working together towards a common goal or objective, typically involving shared efforts or resources.

Joint Effort

Collaboration and shared work between individuals or groups to achieve a common objective.