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Question
What did Harvard economist Edward Chamberlain say about the observation that a monopolistically competitive firmʹs average cost of production exceeds its minimum average total cost?
A) Chamberlain argued that these higher costs represent the wastefulness of this market structure.
B) Chamberlain argued that this belief is incorrect. In his view, monopolistically competitive firms do not produce at a cost above their minimum average total costs.
C) According to Chamberlain, this cost difference represents the value consumers place on variety and having more choice.
D) In Chamberlainʹs view, this is evidence that monopolistic competition uses societyʹs resources inefficiently and in a fashion that merits government intervention.
Answer
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