When economists compare monopoly to the monopolistic competitive market, they show that the latter generates
A) fewer choices for consumers
B) higher prices for consumers
C) higher economic profit (the sum of the economic profit of all firms)
D) less output because monopolies are more efficient
E) lower prices for consumers

Question

Quizplus · Accepted Answer

Monopolistic competition typically results in lower prices for consumers compared to a monopoly, as firms in monopolistic competition face more competition and thus have less pricing power.

When Economists Compare Monopoly to the Monopolistic Competitive Market, They