Is A Monopolistically Competitive Firm Allocatively Efficient?

Rabu, 20 Juli 2022

Is A Monopolistically Competitive Firm Allocatively Efficient?

REGGINA S Juli 20, 2022 Comment

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Textbook solution for microecon. ll+myeconlab+student packet>c 7th edition hubbard/wooten chapter 13 problem 13. 4. 3rq. A monopolistically competitive firm is not productively efficient because it does not produce at the minimum of its average cost curve. Thus, a monopolistically competitive firm will tend to produce a lower quantity at a higher cost and to charge a higher price than a perfectly competitive firm. The allocatively efficient quantity of.

Solution for is a monopolistically competitive firm productively efficient? Is a monopolistically competitive firm allocatively efficient a no because it from econ 3400 at western michigan university A firm in monopolistic competition like all other firms wants to maximize its profit and it earns profit in the short run because of product differentiation which means that price is above the average total cost, so productive efficiency will not be there in monopolistic competition. A monopolistic competitive firm sells good at price higher. Are not productively efficient because they do not produce at minimum average total cost and they are not allocatively efficient because they produce where price is less than marginal cost. Are not productively efficient because they do not produce at minimum average total cost and they are not. It does not produce at the. View the full answer. Is a monopolistically competitive firm productively efficient?.