Even though monopolistic competition results in inefficiency,it does have which of the following benefits for society?
A) Firms make zero economic profit in the long run.
B) Firms can make an economic profit in the short run.
C) Product variety benefits consumers.
D) Marginal cost equals price in the long run.
E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.

Question

Quizplus · Accepted Answer

Monopolistic competition leads to product differentiation and diversity, which results in greater consumer choice and satisfaction. This is an important benefit for society.

Even Though Monopolistic Competition Results in Inefficiency,it Does Have Which