Monopolistically competitive firms do not achieve allocative ...

[ETearle]

Monopolistically competitive firms do not achieve allocative efficiency in the long run because
 a. marginal cost equals marginal revenue
  b. marginal cost is greater than marginal revenue
  c. marginal cost is less than marginal revenue
  d. price is less than marginal cost
  e. price is greater than marginal cost

Question 2

It is not likely that the costly special-interest farm price supports will be replaced by more efficient direct transfer payments because
 a. farming would cease
  b. such a proposal would attract public attention and threaten the survival of the program
  c. the private gains from price supports exceed the costs to society
  d. a direct transfer program would require too much paperwork
  e. consumers favor the current legislation

[chjcharjto14]

Answer to Question 1

E

Answer to Question 2

B

[ETearle]

Thanks for the timely response, appreciate it

[mjenn52]

Wow, this really help