With Respect to Monopolistic Competition

Multiple Choice

With respect to monopolistic competition,

A) both the business-stealing externality and the product-variety externality are positive externalities.
B) the business-stealing externality is a positive externality, while the product-variety externality is a negative externality.
C) the business-stealing externality is a negative externality, while the product-variety externality is a positive externality.
D) both the business-stealing externality and the product-variety externality are negative externalities.