Is resource use efficient in monopolistic competition?
Resource use might be efficient if

Question

Is resource use efficient in monopolistic competition? 
 Resource use might be efficient if

Accepted Answer

the loss incurred because the quantity produced is less than the efficient quantity is offset by the gain from increased product variety.

Answer

firms left the industry.

Answer

firms invested in technology that decreased the marginal cost of production.

Answer

firms made more use of brand names.

Answer

more firms entered the industry.

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