Monopolistic competition may result in high costs-and therefore it does not do a good job of serving consumers the way they want to be served.

Question

Quizplus · Accepted Answer

Monopolistic competition allows for differentiation of products and pricing, leading to consumer choices and potentially lower costs. However, it may not produce the most efficient outcome and could lead to higher costs in the long run.

Monopolistic Competition May Result in High Costs-And Therefore It Does