# One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ? Correct Answer: D. excess of the cost of production and this causes a deadweight loss.. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

Direct Answer & Quick Reference

The correct option is **D. excess of the cost of production and this causes a deadweight loss.**.

A. Since price is above marginal cost surplus is redistributed from buyers to sellers

B. monopolistically competitive firms earn economic profits in the long run

C. monopolistically competitive firms produce beyond their efficient scale

D. excess of the cost of production and this causes a deadweight loss. **(Correct Answer)**

✨ Explain with AI

Verified Key: D. excess of the cost of production and this causes a deadweight loss.
Solved by 5,717+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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