Author Question: Which of the following is NOT regarded as a source of inefficiency in monopolistic competition? ... (Read 119 times)

krzymel · **on:** Jul 1, 2018

Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?

A) The fact that price exceeds marginal cost
B) Excess capacity
C) Product diversity
D) The fact that long-run average cost is not minimized
E) all of the above

Question 2

Refer to Table 5.1. A risk-averse student making a decision solely on the basis of the above information

A) would definitely become a math major.
B) would definitely not become an English major.
C) would definitely become a political science major.
D) might be either a mathematics major or English major, depending upon the utility of the average offer.
E) would definitely be indifferent between the accounting major and the English major if the probability of finding a job in accounting were any value higher than 0.95.