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On the One Hand, the Inefficiency of Monopolistic Competition Is

Question 101

Multiple Choice

On the one hand, the inefficiency of monopolistic competition is that it ____. On the other hand, a positive result is ____.


A) produces too many different products; zero economic profit in the long run
B) fails to minimize total cost; product variety
C) results in a deadweight loss; product variety
D) produces at the point at which marginal revenue equals marginal cost; economic profit
E) fails to maximize profit; normal profit

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