Figure 12.1.2 -Refer to Figure 12.1.2 Above. Which of the Following Best

question 9

Multiple Choice

Figure 12.1.2
-Refer to Figure 12.1.2 above. Which of the following best describes the reason for the shaded triangle in panel (b) ?

• A) The triangle shows the benefits of advertising and product differentiation, which do not exist in perfect competition.
• B) The triangle describes the improvement in efficiency in monopolistic competition.
• C) The triangle describes the deadweight loss associated with market power in monopolistic competition.
• D) The gains in allocative efficiency under monopolistic competition, compared to a perfectly competitive market.

---

Definitions:

Corporate Chains

Businesses owned and operated by a single organization that has multiple outlets in various locations.

Contractual Systems

Arrangements or agreements between two or more parties that legally bind them to specific obligations or responsibilities, often seen in business agreements or franchising.

Corporate Chains

Companies that own or control a series of outlets or branches under a common brand.

Publicly Traded

Describes a company whose shares are bought and sold freely on one or more stock exchanges.