A Significant Benefit of Monopolistic Competition Compared with Pure Competition

question 27

Multiple Choice

A significant benefit of monopolistic competition compared with pure competition is

• A) less likelihood of X-inefficiency.
• B) improved resource allocation.
• C) greater product variety.
• D) stronger incentives to achieve economies of scale.

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Definitions:

Pie Chart

A circular statistic graphic, which is divided into slices to illustrate numerical proportion.

Ease Of Use

Refers to how simple and straightforward a product, service, or system is to use, emphasizing user experience and accessibility.

Gas Mileage

A measure of a vehicle's fuel efficiency, typically expressed in miles per gallon (mpg) or kilometers per liter (km/l).

Consumers Union

A non-profit organization that conducts research and advocacy on behalf of consumers to ensure fair and safe products and services are available in the market.