In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency?
A) high concentration, as indicated by the large concentration ratio
B) product differentiation
C) freedom of entry and exit
D) marginal cost rises as more output is produced
E) the fact there are many firms in the market
B
Economics
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If the natural monopoly shown in the figure above is unregulated, then consumer surplus will be
A) $0. B) $4 million. C) $8 million. D) $16 million.
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Rent-seeking activities have been a major problem in the high-growth Asian economies and contributed greatly to the Asian financial crisis
Indicate whether the statement is true or false
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