Monopolistic competition is judged to be economically inefficient because
A) the price is greater than marginal cost.
B) firms earn zero economic profit in the long run.
C) marginal revenue equals marginal cost.
D) firms have deficient capacity in the long run.
E) firms earn an economic profit in the long run.
A
Economics
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If your wage increases from $10 per hour to $15 per hour, then your
a. opportunity cost of an hour of leisure decreases by $5 per hour. b. opportunity cost of an hour of leisure increases by $5 per hour. c. out-of-pocket cost of an hour of leisure decreases by $5 per hour. d. out-of-pocket cost of an hour of leisure increases by $5 per hour.
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