One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

A. monopolistically competitive firms earn economic profits in the long run

B. excess of the cost of production and this causes a deadweight loss.

C. Since price is above marginal cost surplus is redistributed from buyers to sellers

D. monopolistically competitive firms produce beyond their efficient scale

Found an error? Read our corrections policy and report it in the comments below.

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.