alleryWhy is monopolistic competition called productively inefficient?
APrice falls below MC
BATC is not minimized
CFirms earn super profit
DOutputs have zero cost
Answer & Solution
Correct answer: B. ATC is not minimized
Productive inefficiency occurs because firms do not produce at the lowest point of average total cost.
Keep practising Markets and Theory of Supply
Browse all Markets and Theory of Supply questions for ICSE Class 10, or explore more Economics topics.
Related questions
Match scope reach:
1. Buyer: p. Shielded
2. Public: q. Guarded
3. Trade: r. FairMatch ministry lead:
1. Leader: p. Paswan
2. Desk: q. Ministry
3. House: r. Lok SabhaMatch forum speed:
1. Rules: p. Simple
2. Court: q. Friendly
3. Time: r. SwiftMatch Agmark scope:
1. Grade: p. Standards
2. Farm: q. Produce
3. Pack: r. ProceduresMatch choice right:
1. Access: p. Assured
2. Goods: q. Variety
3. Price: r. CompeteMatch CCPA wing:
1. Wing: p. Inquiry
2. Study: q. Evidence
3. Base: r. StatutoryMatch reform scope:
1. Court: p. Ease load
2. Avenue: q. Redress
3. Panels: r. CitizenMatch enactment:
1. Force: p. July 2020
2. CCPA: q. July 2020
3. Signed: r. Aug 2019