The Fact That Monopolistically Competitive Firms Charge a Price That

Multiple Choice

The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the

A) business-stealing externality that is observed in monopolistically competitive markets.
B) product-variety externality that is observed in monopolistically competitive markets.
C) inefficiencies of the long-term losses earned by monopolistically competitive firms.
D) persistence of positive profits into the long run for monopolistically competitive firms.