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7 July, 09:36

A monopolistically competitive market could be considered inefficient because

a. marginal revenue exceeds average revenue.

b. price exceeds marginal cost.

c. the efficient scale of production is only achieved in the long run, not in the short run.

d. markup pricing does not occur in any other market structure.

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  1. 7 July, 11:57
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    A monopolistically competitive market could be considered inefficient because price exceeds marginal cost. A monopolistic competitive market is defined as imperfect competition because there are many producers that sell products that differentiate from each other. Because these products differentiate between how they branded and their quality they are not able to be perfect substitutes for one another.
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