What condition may provide for a relatively small degree of inefficiency under monopolistic competition?
A) There is a single seller and no product differentiation.
B) The marginal cost of production is less than the market price.
C) The demand curve is relatively elastic so that the price is near the long-run minimum average cost.
D) There is only one buyer in the market.
C
Economics
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Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) Household wealth declines. B) The price level in the United States falls relative to the price level in other countries. C) The interest rate rises. D) Congress abolishes investment tax incentives.
Economics