Monopolistically competitive firms are productively inefficient because production occurs where:A. marginal cost is greater than marginal revenue. B. marginal cost is less than marginal revenue. C. average total cost is greater than the minimum average total cost. D. average total cost is less than the difference between average total cost and average variable cost.

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Business

Jaylen Mccarty

22 April, 04:38

Monopolistically competitive firms are productively inefficient because production occurs where:A. marginal cost is greater than marginal revenue. B. marginal cost is less than marginal revenue. C. average total cost is greater than the minimum average total cost. D. average total cost is less than the difference between average total cost and average variable cost.

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Chris Weiss · Answer 1

Answer: Monopolistically competitive firms are productively inefficient because production occurs where C. The average total cost is greater than the minimum average total cost.

Explanation: The average total cost shows the average in cost to produce a unit. Monopolistic competition is an imperfect competition because producers sell productions completely different fro each other in means of quality and branding. The average total cost needs to be below the minimum average total cost so that profit is being made continuously.