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In Monopolistic Competition,there Is Inefficiency Because Price Is Greater Than

Question 72

Multiple Choice

In monopolistic competition,there is inefficiency because price is greater than marginal cost.What brings about this inefficiency?


A) high concentration, as indicated by the large concentration ratio
B) product differentiation
C) freedom of entry and exit
D) marginal cost rises as more output is produced
E) the fact there are many firms in the market

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