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Economics
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ENGLISH
Economics
Which of the following statements best describes the outcome under monopolistic competition ?
A
It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
Option A
B
It is efficient because entry is free and economic profits are eliminated in the long run.
Option B
It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
Correct answer
D
It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.
Option D
Correct answer: C
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