In the short run, the price charged by a monopolistically competitive firm attempting to maximize profits:
A. must be less than ATC.
B. must be more than ATC.
C. may be either equal to ATC, less than ATC, or more than ATC.
D. must be equal to ATC.
Answer: C
Economics
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A quantity less than the equilibrium quantity in a competitive market is inefficient because
A) the marginal benefit of another unit is greater than its marginal cost. B) too much of the good is being produced. C) the marginal cost of another unit is greater than its marginal benefit. D) the marginal benefit of another unit is not equal to zero. E) the marginal benefit is not maximized.
Economics
As you eat a hamburger, there is less and less of it available for someone else to eat. This is the characteristic of nonexclusivity
Indicate whether the statement is true or false
Economics