how-do-productive-and-allocative-efficiency-differ-in-monopolistic-competition-c

Question

How do productive and allocative efficiency differ in monopolistic competition compared to perfect competition?

Accepted Answer

Neither efficiency is achieved in monopolistic competition, while both are achieved in perfect competition.

Answer

Productive efficiency is achieved in monopolistic competition, but allocative efficiency is not.

Answer

Allocative efficiency is achieved in monopolistic competition, but productive efficiency is not.

Answer

Both efficiencies are achieved in monopolistic competition but not in perfect competition.