Multiple Choice
If a perfectly competitive firm and a monopolistic competitive firm face the same demand and cost curves, then
A) the perfectly competitive firm will attain resource-allocative efficiency, but the monopolistic competitive firm will not.
B) the perfectly competitive firm will attain resource-allocative efficiency, but the monopolistic competitive firm may or may not, depending upon the demand for its product.
C) the perfectly competitive firm will not attain resource-allocative efficiency, but the monopolistic competitive firm will.
D) both the perfectly competitive firm and the monopolistic competitive firm will attain resource-allocative efficiency.
E) neither the perfectly competitive firm nor the monopolistic competitive firm will attain resource-allocative efficiency.
Correct Answer:
Verified
Correct Answer:
Verified
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