In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur

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In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur

s where price exceeds marginal cost. underallocated because long-run equilibrium occurs where marginal cost exceeds price. overallocated because long-run equilibrium occurs where marginal cost exceeds price. underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Business

1 answer:

sasho [114] · Answer 1 · 2022-03-19T09:28:47+03:00

Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Explanation:

Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.

It should be noted that in monopolistically competitive markets, resources are underallocated because long-run equilibrium occurs where price exceeds marginal cost..