The variety that monopolistic competition provides is paid primarily by
A)The producer whose ability to pass on costs is limited by his demand curve
B)All consumers whether they desire variety or not
C)Those customers who desire the variety
D)No one because variety costs no more to produce than uniform products cost to produce

Question

Quizplus · Accepted Answer

In monopolistic competition, firms differentiate their products to cater to specific consumer preferences, and those consumers who desire and choose these differentiated products bear the cost of the variety.

The Variety That Monopolistic Competition Provides Is Paid Primarily by