One Prediction About Monopolistic Competition Is That It Has Higher

question 6

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

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Definitions:

Matching Capacity

A strategy to adjust the supply of a company's capacity to meet demand by scaling operations or workforce.

Impact on Expenses

The effect or influence that certain actions or events have on the costs incurred by a business.

Time-Driven Activity-Based Costing

A refinement of activity-based costing that assigns costs based on the time resources are actually used for activities, rather than on predetermined allocations.

Tech Support Department

A specialized unit within a company that provides technical assistance and support to customers or internal users.