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

Related Mcqs:

Which of the following is not a characteristic of a monopolistically competitive market ?

A. free entry and exit B. long run economic profits C. many sellers D. differentiated products...

Which of the following is not an argument put forth by economists in support of the use of advertising ?

A. Advertising increases competition B. Advertising provides information to customers about prices, new products and location of retail outlets. C. Advertising provides a creative outlet for artists and writers D. Advertising provides new firms with the means to attract customers from existing firms....

Which of the following products is least likely to be sold in a monopolistically competitive market ?

A. breakfast B. cotton C. video games D. beer...

In the short run, if the price is above average total cost in a monopolistically competitive market, the firm makes ?

A. losses and firms exit the market B. profits and firms exit the market C. losses and firms enter the market D. profits and firms enter the market...

Which of the following firms has the least incentive to advertise ?

A. a manual fracture of breakfast cereal B. a wholesaler of crude oil C. a restaurant D. a manufacturer of home heating and air conditioning...