Monopolistically competitive industries are inefficient because:
A. they realize diseconomies of scale.
B. advertising costs retard technological advance and product development.
C. they are overpopulated with firms whose plants are underutilized.
D. monopolistically competitive sellers engage in misleading advertising.
Answer: C
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Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.
As a researcher, which aspect of the results would be of greatest concern?
A) the negative value of the constant (i.e., -6,500) B) the relatively low impact of the competitor's price C) the fact that not all of the variables are statistically significant D) the poor fit of the regression line