Monopolistic competition is an inefficient market structure because
a. marginal revenue equals marginal cost.
b. it has a deadweight loss, just as monopoly does.
c. long-run profits are zero due to free entry.
d. All of the above are correct.
b
You might also like to view...
What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?
A) tax B) subsidy C) price floor D) deadweight loss E) quantity restriction
Those who favor an active approach to policy and those who favor a passive approach disagree not only on how quickly the government can act but also on how stable the economy basically is
a. True b. False Indicate whether the statement is true or false
Number of WorkersUnits of Output001402903126415051656180Refer to the above data. The marginal product of the sixth worker is:
A. negative. B. 180 units of output. C. 15 units of output. D. 30 units of output.
An unexpected decrease in inventories has a positive effect on future production.
Answer the following statement true (T) or false (F)