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    Principles of Economics
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    Exam 16: Monopolistic Competition
  5. Question
    The Main Reason That a Monopolistically Competitive Market Is Considered
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The Main Reason That a Monopolistically Competitive Market Is Considered

Question 140

Question 140

Multiple Choice

The main reason that a monopolistically competitive market is considered inefficient is because:


A) marginal cost exceeds average revenue
B) excess capacity is a short-run problem
C) prices exceed average total cost
D) price exceeds marginal cost

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