Excess Capacity Is a Problem in Monopolistic Competition Because,if There

question 226

Multiple Choice

Excess capacity is a problem in monopolistic competition because,if there were fewer firms in the industry:

• A)there would be more choices for consumers.
• B)average total costs would be higher and profits would be lower.
• C)average total costs would be lower and the prices paid by consumers could be lower.
• D)there would be less need for government regulation.

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Definitions:

Social Influences

The effects that the words, actions, or mere presence of other people have on an individual's thoughts, feelings, attitudes, or behavior.

Extraversion

A personality trait characterized by enthusiasm, assertiveness, and sociability; extraverts tend to seek out social interaction and stimulation.

Emotional Stability

A personality trait that signifies a person's ability to remain calm and composed under stress or pressure.

Unsafe Behaviours

Actions or practices by individuals that can potentially lead to accidents, injuries, or harm to health within a workplace or environment.