Scenario 16-2
Delish, a moderately priced restaurant, has recently announced intentions to open a restaurant in Boston, MA. Assume that the restaurant market in Boston is characterized by monopolistic competition.
-Refer to Scenario 16-2. As a result of the new restaurant, consumers in Boston are likely to experience a

Question

Quizplus · Accepted Answer

The entry of a new restaurant in a monopolistically competitive market increases the variety of products available to consumers, which is a positive externality.

Scenario 16-2 Delish, a Moderately Priced Restaurant, Has Recently Announced Intentions to Intentions