In a monopolistically competitive market
A) firms are price setters.
B) barriers to entry are high.
C) firms earn positive economic profit in the long run.
D) products are undifferentiated.
A
Economics
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Explain the objective of the benevolent social planner
What will be an ideal response?
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If, in a competitive market, marginal benefit is less than marginal cost
A) the government must force producers to raise prices in order to achieve economic efficiency. B) the output is greater than the equilibrium quantity. C) the output is less than the equilibrium quantity. D) the net benefit to consumers from participating in the market is less than the net benefit to producers.
Economics