Scenario 16-6 Ike's Ice Cream Has Decided to Open a New Ice

Multiple Choice

Scenario 16-6
Ike's Ice Cream has decided to open a new ice cream parlor in Mayville, MS. The market for ice cream parlors is monopolistically competitive.
-Refer to Scenario 16-6. As a result of the new Ike's Ice Cream parlor, consumers living in and visiting Mayville are likely to experience a

A) business-stealing externality, which harms producers.
B) business-stealing externality, which benefits producers.
C) product-variety externality, which harms consumers.
D) product-variety externality, which benefits consumers.