
Which statement defines business-stealing externality
A) It is the positive externality associated with the gains of consumer surplus in a monopolistically competitive market.
B) It occurs when one firm attempts to exactly duplicate exactly the product of another firm.
C) It is considered to be an explicit cost of business in monopolistically competitive markets.
D) It is the negative externality associated with entry of new firms in a monopolistically competitive market.
Correct Answer:
Verified
Q56: When a firm exits a monopolistically competitive
Q57: Figure 16-2 Q58: Figure 16-3 Q59: To maximize its profit,a monopolistically competitive firm Q60: When a profit-maximizing firm in a monopolistically Q62: Why is a profit-maximizing firm in a Q63: For profit-maximizing firms in a monopolistically competitive Q64: In the long run,a profit-maximizing firm in Q65: In a situation of long-run equilibrium,which statement Q66: Why is excess capacity undesirable
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A)It reduces product
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