In What Way Is Monopolistic Competition Superior to Perfect Competition

question 4

Multiple Choice

In what way is monopolistic competition superior to perfect competition?

• A) The cost of producing the industry's output is lower in monopolistic competition.
• B) Consumers benefit from having differentiated products instead of identical products.
• C) Long-run profits are higher in monopolistic competition than in pure competition.
• D) In monopolistic competition,firms can fully exploit any existing economies of scale.

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Definitions:

Contextual Factors

Elements or conditions within the environment that influence the outcome or behavior of individuals or events within that context.

Peer Influence

The impact that the behaviors, opinions, or attitudes of peers can have on an individual's own actions or beliefs.

Social Support

Refers to the psychological and material resources provided by a network of family, friends, colleagues, and others, which can enhance an individual's ability to cope with stress and hardships.

Cognitive Development Theory

A theory that outlines how human beings perceive, think, and understand their world through the interplay of genetic and learned factors.