Which of the following is an advantage to society of monopolistic competition?
A) Only essential costs are incurred.
B) The firms have excess capacity so they are always willing to increase their production.
C) Long-run profitability.
D) Production at the lowest possible average cost.
E) Product variety.

Question

Quizplus · Accepted Answer

Monopolistic competition allows for product differentiation, which leads to a wider variety of products being available to consumers. This can benefit society by satisfying a diverse range of preferences and needs.

Which of the Following Is an Advantage to Society of Monopolistic