Monopolistic competition is said to be productively inefficient because
A.
the long-run price is above minimum average total cost.
B.
long-run profits are positive.
C.
firms engage in collusive behavior.
D.
there exist no barriers to entry.
E.
there exist diseconomies of scale.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：44
Answer:
A
Knowledge points:
3.3 Long-Run Production Costs
4.4 Monopolistic Competition
6.1 Socially Efficient and Inefficient Market Outcomes
Solution:
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