The Product-Variety Externality and the Business-Stealing Externality Are Both Spillover

question 135

True/False

The product-variety externality and the business-stealing externality are both spillover costs of new firms entering a monopolistically competitive market.

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Definitions:

Sympathetic Chain

The sympathetic chain comprises a series of ganglia connected by nerve fibers running parallel to the spinal cord, part of the sympathetic nervous system.

Splanchnic Nerves

Nerves that innervate the viscera, conveying information to and from the gut and other internal organs.

Sympathetic Fibers

Nerves of the sympathetic nervous system that act to regulate the body's unconscious actions and are key in the fight or flight response.

Spinal Cord

The main pathway for information connecting the brain and peripheral nervous system.