Some economists argue that monopolistically competitive markets are inefficient because:
a. the firms earn economic profits in the long run.
b. the firms' marginal costs and marginal revenues are not always equal.
c. firms do not produce the output rate that would minimize their average total cost.
d. barriers to entry are high.
c
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Cyclical unemployment is
A) the total of structural and frictional unemployment. B) created by a recession. C) part of frictional unemployment. D) higher when the economy is expanding. E) always greater than the total of structural and frictional unemployment.
One reason why adverse selection problems arise in the market for health insurance is because
A) sick people are more likely to want health insurance than are healthy people. B) fewer people are choosing careers in the medical field because of increases in the cost of education. C) as people live longer, a greater portion of their medical bills will have to be paid by younger generations. D) advances in medical technology are costly, and drive up the price of medical insurance.