43)Refer to Figure 13-18. The diagram demonstrates that43)
44)For productive efficiency to hold44)
45)For allocative efficiency to hold45)
46)Is a monopolistically competitive firm productively efficient?46)A)Yes, because price equals average total cost.B)Yes, because it produces where marginal cost equals marginal revenue.C)No, because price is greater than marginal cost.D)No, because it does not produce at minimum average total cost.
47)Which of the following statements is true about monopolistically competitive firms?47)
48)In contrast with perfect competition, excess capacity characterizes monopolistic competition. Excesscapacity is due to which of the following?48)