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Economics
MEDIUM
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Economics
One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?
A
Since price is above marginal cost surplus is redistributed from buyers to sellers
Option A
B
monopolistically competitive firms earn economic profits in the long run
Option B
C
monopolistically competitive firms produce beyond their efficient scale
Option C
excess of the cost of production and this causes a deadweight loss.
Correct answer
Correct answer: D
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