When the excess capacity problem under monopolistic competition becomes greater,there will be:
A) a narrower range of consumer choice.
B) fewer advertisements and promotions.
C) a wider range of consumer choice.
D) more entry by firms into the market.

Question

Quizplus · Accepted Answer

A greater excess capacity problem in monopolistic competition typically leads to a wider range of consumer choice as firms differentiate their products to attract more customers.

When the Excess Capacity Problem Under Monopolistic Competition Becomes Greater,there