Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A) worse because consumers get fewer choices.
B) worse because consumers pay a higher price.
C) the same.
D) better because consumers get less output.
E) better because consumers pay a lower price.

Question

Quizplus · Accepted Answer

In monopolistic competition, there are many firms, leading to more competition and typically lower prices compared to a monopoly, where a single firm dominates the market and can set higher prices.

Compared to Monopoly, the Market Results with Monopolistic Competition Are