A significant benefit of monopolistic competition compared with pure competition is
A) less likelihood of X-inefficiency.
B) improved resource allocation.
C) greater product variety.
D) stronger incentives to achieve economies of scale.
Correct Answer:
Verified
Q222: In monopolistically competitive markets, resources are
A)overallocated because
Q223: At long-run equilibrium in monopolistic competition, there
Q224: In the long run, the representative firm
Q225: Excess capacity implies
A)productive inefficiency.
B)allocative inefficiency.
C)productive efficiency.
D)allocative efficiency.
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