One prediction about monopolistic competition is that it has higher unit costs than perfect competition. But it is unreasonable to conclude that monopolistic competition is therefore bad for consumers because
A) consumers benefit from products becoming more homogeneous.
B) consumers benefit from lower prices.
C) consumers benefit from an increased variety of products.
D) consumers benefit because of an increase in quantity available.
E) higher production costs means more employment.
Correct Answer:
Verified
Q22: Suppose two firms, Allstom from France,
Q23: Consider an example of the prisoner's dilemma
Q24: Suppose the 2- firm concentration ratio (measuring
Q25: The main difference between perfect competition and
Q26: One reason an oligopolistic firm may have
Q28: If entry into a monopolistically competitive industry
Q29: Oligopolists make decisions after taking into account
Q30: A special kind of imperfectly competitive market
Q31: are products that differ from each other
Q32: In a monopolistically competitive industry, the freedom
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents