Monopolistically competitive industries are inefficient because

Monopolistically competitive industries are inefficient because a.economic profits are greater than zero in the long run b.firms produce less output than the level that minimizes average cost and a. too many brands are produced b. price is above marginal cost

Answer

Answer
Option b
b.firms produce less output than the level that minimizes average cost
and
b. price is above marginal cost
The Monopolistic competition, in long run, produces at ATC=P but the ATC is above MC

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