Nonprice competition in monopolistically competitive markets results in

Question

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Nonprice competition in monopolistically competitive markets leads to firms competing based on the characteristics that differentiate their products. This can include advertising, product design, and customer service. This type of competition is important in creating product diversity and helps firms to maintain market power. Nonprice competition does not necessarily result in the lowest price for consumers (choice A), nor does it result in less advertising and product differentiation (choice B). In the long run, price in a monopolistically competitive market will not equal minimum average total cost (choice D), as there is still market power for differentiated products.

Nonprice Competition in Monopolistically Competitive Markets Results in