In what two ways does trade benefit consumers when firms are monopolistically competitive?
A) better quality products, increased information
B) higher incomes, more dependable products
C) lots of bells and whistles, higher wages
D) lower prices, more variety

Question

Quizplus · Accepted Answer

Trade benefits consumers in monopolistically competitive markets by providing a larger variety of goods and services, as well as lower prices. This is because increased competition from foreign firms ensures that domestic firms cannot charge excessively high prices for their products. As a result, consumers have a wider range of options to choose from and can purchase goods at a lower cost.

In What Two Ways Does Trade Benefit Consumers When Firms