Question

only a monopolistically competitive firm operates at its efficient scale. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production. neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost. only a perfectly competitive firm operates at its efficient scale.

Answer 1

Correct Answer:

only a monopolistically competitive firm operates at its efficient scale.

Step-by-step explanation:

In a given market, a given organization or firm could operate either in a monpolistically competitive or perfectively competitive at its efficient scale. However, in the long run, only a monopolistically competitive firm operates at its efficient scale.