Suppose housing construction is a price-searcher market with low barriers to entry. Which of the following will be true for this market?
A) The output of the housing construction firms will be produced inefficiently.
B) Consumers would be better off if there were fewer firms and less variety in the housing market.
C) If firms produced larger quantities but less variety, they could reduce the per-unit costs.
D) Consumers do not have to pay for variety in the housing construction market.
Correct Answer:
Verified
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