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What Type of Externalities Accompany the Entry of New Firms

Question 73

Multiple Choice
What type of externalities accompany the entry of new firms into a monopolistically competitive market

What type of externalities accompany the entry of new firms into a monopolistically competitive market


A) the product-variety externality as a positive externality and the business-stealing externality as a negative externality
B) the product-variety externality as a negative externality and the business-stealing externality as a positive externality
C) the business-variety externality as a positive externality and the product-stealing externality as a negative externality
D) the business-variety externality as a negative externality and the product-stealing externality as a positive externality

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