Refer to the graph shown. Which point has an elasticity greater than 1?

Which of the following is NOT true about a cartel?

A) Members earn economic profits. B) Members experience large economies to scale relative to industry demand. C) Cartels will set common prices for their members. D) Members of a cartel will have production quotas.

Monopolistic competition is inefficient because:

a. firms earn positive economic profits. b. the firms' marginal costs and marginal revenues are not equal. c. firms have excess capacity in the long run. d. entry is difficult.