Profit Maximizing Under Perfect Competition & Monopoly Mcqs


Q.  Which of the following statements best describes the outcome under monopolistic competition ?

a. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal
b. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal
c. in monopolistic competition there is the correct number of firm and each firm produces a slightly different product at an optimal scale.
d. In monopolistic competition there are too many firms and each firm produce a slightly different product at the optimal scale


ANSWER: See Answer
 
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