Monopolistic competition is inefficient because:
a. firms earn positive economic profits.
b. the firms' marginal costs and marginal revenues are not equal.
c. firms have excess capacity in the long run.
d. entry is difficult.
c
Economics
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A decrease in the price of DVD players leads consumers to buy more DVD players. From this information we can conclude that DVD players
a. are normal goods. b. are inferior goods. c. are luxury goods. d. could be any of the above.
Economics
When individuals and businesses are permitted to trade freely over a larger market area
What will be an ideal response?
Economics