A firm in monopolistic competition is
A) efficient because in the long run it earns zero economic profit.
B) efficient because it produces at the minimum average total cost.
C) inefficient because price exceeds marginal cost.
D) efficient because of the ease of entry.
E) efficient because it produces where MR = MC.
C
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The area beneath a consumer's demand curve out to the quantity purchased represents
a. consumer's surplus. b. the region of mutual advantage. c. the total value of the consumer's purchases. d. the marginal value placed on the last unit consumed.
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
A quota ________ a deadweight loss and a tariff ________ a deadweight loss
A) creates; creates B) creates; does not create C) does not create; creates D) does not create; does not create E) might create; might create
Briefly explain the economic concept of elasticity
What will be an ideal response?