The economically desirable thing about product variety is
A)that there is always free entry and exit.
B)that different individuals' diverse tastes are satisfied.
C)the increased economic activity that results from it.
D)that many firms participate in a market with product variety.
E)the freedom it gives firms to produce in slightly different ways.

Question

Quizplus · Accepted Answer

Product variety allows for different individuals' diverse tastes to be satisfied, which is economically desirable as it increases consumer welfare and satisfaction. This can also lead to increased competition and innovation among firms as they try to differentiate their products in the marketplace.

The Economically Desirable Thing About Product Variety Is