A monopolistic competitive firm is inefficient because the firm: ...

[Marty]

A monopolistic competitive firm is inefficient because the firm:
 a. is not maximizing its profit.
  b. is producing at an output where average total cost is not minimum.
  c. earns positive economic profit in the long run.
  d. none of these.

Question 2

Only at the point of consumer equilibrium does the marginal rate of substitution (MRS) equal the:
 a. slope of the budget line.
  b. slope of the indifference curve.
  c. price ratio.
  d. all of these.

[Anna]

Answer to Question 1

b

Answer to Question 2

d

[Marty]

Excellent

[ktidd]

Gracias!