Which of the following statements best describes the outcome under monopolistic competition ?

Question

Xaibi Aslam · Accepted Answer

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

Xaibi Aslam · Answer

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

Xaibi Aslam · Answer

It is efficient because entry is free and economic profits are eliminated in the long run.

Xaibi Aslam · Answer

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.

Question #48906