One Prediction About Monopolistic Competition Is That It Has Higher

question 25

Multiple Choice

One prediction about monopolistic competition is that it has higher unit costs than perfect competition.But it is unreasonable to conclude that monopolistic competition is therefore bad for consumers because

• A)consumers benefit from products becoming more homogeneous.
• B)consumers benefit because of an increase in quantity available.
• C)higher production costs means more employment.
• D)consumers benefit from lower prices.
• E)consumers benefit from an increased variety of products.

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