Asked by
Danny Fantom
on Nov 26, 2024
Verified
In monopolistically competitive markets, resources are
A) overallocated because long-run equilibrium occurs where price exceeds marginal cost.
B) underallocated because long-run equilibrium occurs where price exceeds marginal cost.
C) overallocated because long-run equilibrium occurs where marginal cost exceeds price.
D) underallocated because long-run equilibrium occurs where marginal cost exceeds price.
Monopolistically Competitive
A market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power and price control by individual firms.
Resource Allocation
The process of distributing available resources among various projects or business units.
- Outline the methods by which monopolistically competitive markets achieve or do not achieve efficient resource allocation and production.
Verified Answer
MP
Learning Objectives
- Outline the methods by which monopolistically competitive markets achieve or do not achieve efficient resource allocation and production.
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