Economists Agree That a Monopolistically Competitive Market Structure

Multiple Choice

Economists agree that a monopolistically competitive market structure

A) lowers consumer utility because consumers pay a price higher than the marginal cost of production.
B) is detrimental to society because it leads to a waste of scarce resources.
C) benefits consumers because firms produce products that appeal to a wide range of consumer tastes.
D) can eliminate any excess capacity if all firms in the industry devote more funds to differentiating their products.