Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A) worse because consumers get fewer choices.
B) worse because consumers pay a higher price.
C) the same.
D) better because consumers pay a lower price.

Question

Quizplus · Accepted Answer

In monopolistic competition, there are many firms competing and differentiating their products, which tends to drive prices down compared to a monopoly where a single firm controls the market and can set higher prices.

Compared to Monopoly, the Market Results with Monopolistic Competition Are