With Respect to Monopolistic Competition

question 453

Multiple Choice

With respect to monopolistic competition,

• A)both the business-stealing externality and the product-variety externality are positive externalities.
• B)the business-stealing externality is a positive externality, while the product-variety externality is a negative externality.
• C)the business-stealing externality is a negative externality, while the product-variety externality is a positive externality.
• D)both the business-stealing externality and the product-variety externality are negative externalities.

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Definitions:

ESP

Extrasensory Perception, a claimed ability to gain information without the use of the known five senses.

Sensory Input

The information that the brain receives from the senses, including sight, sound, smell, taste, and touch, which it uses to understand the environment.

Perception

The process by which individuals interpret sensory information to make sense of their surroundings and experiences.

Vestibular Sense

A sensory system located in the inner ear that contributes to our sense of balance and spatial orientation.