Multiple Choice
Why might the benefits of monopolistic competition outweigh the inefficiencies?
A) Monopolistic competition has higher deadweight loss than monopoly.
B) In monopolistic competition, firms do not produce at their minimum average cost.
C) In monopolistic competition, firms do not price at marginal cost.
D) If we had perfect competition instead of monopolistic competition, we would not have all the variety and innovation that we have today.
Correct Answer:
Verified
Correct Answer:
Verified
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