In monopolistic competition, consumers would be better off if output were expanded.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms have some market power but face competition from other firms producing similar products. This means that they can charge slightly higher prices than in a perfectly competitive market. However, if output were expanded, this would increase competition and potentially lead to lower prices, which would benefit consumers. Therefore, consumers would be better off if output were expanded in monopolistic competition.

In Monopolistic Competition, Consumers Would Be Better Off If Output