Which of the following statements is not true for a monopolistically competitive industry?
A) Firms tend to operate with excess capacity.
B) Each firm faces a downward-sloping demand curve.
C) These firms earn zero economic profits in the long run.
D) Firms operate at the lowest point of their ATC curves in the long run.
Correct Answer:
Verified
Q138: Assume that the short-run cost and
Q139: If monopolistically competitive firms in an industry
Q140: In the long run, a representative firm
Q141: Compared to pure competition, monopolistic competition
A) provides
Q142: Excess capacity implies
A) productive inefficiency.
B) allocative inefficiency.
C)
Q144: Monopolistic competitive firms are productively inefficient because
Q145: In the long run, the representative firm
Q146: Which is true of pure competition but
Q147: Product variety in monopolistic competition comes at
Q148: Which statement concerning monopolistic competition is false?
A)
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