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Morgan Bridgeman
on Oct 12, 2024

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Monopolistic competition may lead to each of the following except

A) too many firms in the industry
B) zero economic profits in the long run
C) a price that is above the ATC curve in the long run
D) non-price competition

Economic Profits

The surplus left after deducting all costs, including opportunity costs, from a firm's total revenues, indicating the efficiency of resource allocation.

ATC Curve

Represents the Average Total Cost per unit of output produced, which is calculated by dividing the total cost by the quantity of output.

Non-price Competition

Strategies used by companies to attract customers through methods other than lowering prices, such as product differentiation and marketing.

  • Recognize the role of non-price competition in monopolistic competition.
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JC
Jessi CantrellOct 16, 2024
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