Centrally planned economies like China produce relatively little pollution

Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?

A) The fact that price exceeds marginal cost B) Excess capacity C) Product diversity D) The fact that long-run average cost is not minimized E) all of the above

Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?

a. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist. b. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does. c. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost. d. A monopolist can earn economic profit in the short run; a competitive price taker cannot.