Asked by
Julie Coombs
on Oct 12, 2024
Verified
In the long run the monopolistic competitor ________ at peak efficiency and the perfect competitor ________ at peak efficiency.
A) operates;operates
B) operates;does not operate
C) does not operate;operates
D) does not operate;does not operate
Peak Efficiency
The state or condition in which a system or process operates at its maximum potential or effectiveness, utilizing resources optimally without waste.
Monopolistic Competitor
A market structure where many companies sell products that are similar but not identical, allowing for significant control over pricing and competition on factors other than price, such as quality and branding.
Perfect Competitor
A market scenario where numerous small firms are competing against each other, and no single firm has the market power to influence the price of its product.
- Define the characteristics and implications of permanent equilibrium in monopolistic competition, including the achievement of a no-gain state and performing under the best efficiency.
Verified Answer
SP
Learning Objectives
- Define the characteristics and implications of permanent equilibrium in monopolistic competition, including the achievement of a no-gain state and performing under the best efficiency.