If we believe that "variety is the spice of life," then we should be more concerned about the excess capacity in monopolistic competition and do our best to eliminate it.

Question

Quizplus · Accepted Answer

The phrase "variety is the spice of life" suggests that diversity and choice are valuable. Monopolistic competition, by providing a variety of products and services, caters to diverse consumer preferences, even though it may lead to excess capacity. Eliminating this excess capacity could reduce variety, contradicting the value placed on diversity.

If We Believe That "Variety Is the Spice of Life