What is one source of inefficiency in monopolistic competition? - ProProfs Discuss
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What is one source of inefficiency in monopolistic competition?



Asked by Adeola, Last updated: Jul 03, 2024

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John Smith

John Smith

John Smith
John Smith

Answered Dec 23, 2016

Because price is above marginal cost, some units are not produced that buyers value in excess of the cost of production and this causes a deadweight loss
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