Multiple Choice
Which of the following statements regarding the efficiency of monopolistic competition is FALSE?
A) Compared to a situation with total product uniformity, monopolistic competition might be efficient.
B) Resources are used efficiently when marginal social benefits equals marginal social cost.
C) Monopolistic competition is definitely inefficient because price exceeds marginal cost.
D) A greater degree of product variety creates a loss because the quantity produced is less than the efficient quantity.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: In the long run, a monopolistically competitive
Q4: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure above
Q5: In the long-run equilibrium, a firm's price
Q6: Product differentiation is a defining characteristic of<br>A)
Q7: In monopolistic competition, the demand curve for
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure above
Q10: In monopolistic competition<br>A) firms face barriers to
Q11: In monopolistic competition, in the long run
Q12: One benefit of monopolistic competition over perfect
Q13: In the long run, monopolistically competitive firms