One Prediction About Monopolistic Competition Is That It Has Higher

question 80

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

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Definitions:

Cocktail Party Effects

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as if at a noisy party.

Inattentional Blindnesses

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight when their attention is focused on another task or aspect of their environment.

Evolutionary Psychology

A contemporary evolutionary perspective used in the social and natural sciences to scrutinize psychological structures.

Neurology

The branch of medicine concerned with the study and treatment of disorders of the nervous system.