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MMLU / Monopolistic competition is said to be productively inefficient because

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Monopolistic competition is said to be productively inefficient because

choices

  1. the long-run price is above minimum average total cost.
  2. long-run profits are positive.
  3. firms engage in collusive behavior.
  4. there exist no barriers to entry.

subject

high_school_microeconomics

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Source and history

Official source

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