Multiple Choice
What is happening when a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost
A) It is violating Canadian competition policy.
B) It must be losing money.
C) There is a deadweight loss, but it is exactly offset by the benefit of excess capacity.
D) It is enjoying a markup over marginal cost.
Correct Answer:
Verified
Correct Answer:
Verified
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