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Monopolistically competitive firms may not be able to produce goods at the lowest possible average cost. This statement is describing how monopolistically competitive firms might be _____.

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**Answer: Without economies of scale**
^^Hope that helps
User BorisOkunskiy
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Answer: The correct answer is : Without economies of scale.

Explanation: If a firm enjoys economies of scale, Its average total cost will decrease as production increases. In the economy of scale, the company decreases its production expenses when it expands, that is, the more it is produced, the lower the cost of manufacturing a product.