Mcqs Clouds
mcqsclouds.com

One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

A. Since price is above marginal cost surplus is redistributed from buyers to sellers

B. monopolistically competitive firms earn economic profits in the long run

C. monopolistically competitive firms produce beyond their efficient scale

D. excess of the cost of production and this causes a deadweight loss.

Related Questions on Monopoly, Competition & Labour Market Mcqs

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?

A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

B. Monopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

C. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

D. The products are differentiated in a monopolistically competitive market just like in a competitive market.