Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?

A. With excess capacity and charge a price above marginal cost

B. at the efficient scale and charge a price equal to marginal cost

C. at the efficient scale and charge a price above marginal cost

D. With excess capacity and charge a price equal to marginal cost

Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.

Discuss the answer or suggest a sourced correction
Thank you for contributing.
Your comment was submitted and will appear after editorial review.

Your email is used only for moderation and is never displayed. Spam, copied material and fabricated endorsements are rejected.