1. Firms in monopolistic competition are only going to make what profit in the long run?
- Normal profit
- Abnormal profit
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2. Allocative efficiency is being achieved
3. Which of these is NOT a characteristic of monopolistic competition
- Firms are price takers
- Good knowledge
- Non-homogeneous products
- Many small buyers and sellers with a small market share
- Low barriers to entry and exit
4. In both short run and long run - in terms of allocative efficiency...
5. In monopolistic competition, is being productive efficiency achieved?
- Productive efficiency is not being achieved, since in the short run and long run, the firm is operating on the downward-sloping part of the AC curve
- Productive efficiency is being achieved, since in the short run and long run, the firm is operating at the lowest point of the AC curve
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