When weighing the efficiency of monopolistic competition,which of the following should be considered?
I.The information provided by advertising
Ii.Product variety
Iii.The extra cost of excess capacity
A)ii only
B)i and iii
C)ii and iii
D)i,ii,and iii
E)iii only

Question

Quizplus · Accepted Answer

In monopolistic competition, advertising provides information, product variety is a key feature, and excess capacity can lead to inefficiencies, so all three should be considered.

When Weighing the Efficiency of Monopolistic Competition,which of the Following