In terms of scale of production and pricing, how do monopolistically competitive firms behave?

1. A Option A: At the efficient scale and charge a price above marginal cost
2. B Option B: With excess capacity and charge a price above marginal cost
3. C Option C: At the efficient scale and charge a price equal to marginal cost
4. D Option D: With excess capacity and charge a price equal to marginal cost

Answer checked 11 October 2026 · How we write and check questions