What condition may provide for a relatively small degree of inefficiency under monopolistic competition?
A) There is a single seller and no product differentiation.
B) The marginal cost of production is less than the market price.
C) The demand curve is relatively elastic so that the price is near the long-run minimum average cost.
D) There is only one buyer in the market.
C
You might also like to view...
According to the partisan theory,
a. politicians are viewed as working only for their own welfare. b. there are two parties with flexible goals. c. moderates and liberals often switch political goals. d. macroeconomic policy is not a key focus of most politicians. e. none of the above.
If the MRP is less than the wage, the firm should hire more labor
a. True b. False Indicate whether the statement is true or false
In 2014, China had accumulated $3.8 trillion worth of reserve assets. These $3.8 trillion entered into China's balance of payments in the:
a. The total amount did not enter into China's balance of payments. Only changes enter the balance of payments. b. Reserve Account. c. Trade balance. d. Balance on goods and services. e. Financial Account.
Mitch makes payments on a car loan. If the price level a year ago was 120 and people expected it to rise to 125 but it actually rose to 128, what happened to the real value of Mitch's payment as opposed to what he was expecting to happen? Express your answer to the nearest 100th