The Excess Capacity Theorem Implies That

question 72

Multiple Choice

The excess capacity theorem implies that

• A)consumers would be better off if some monopolistically competitive firms left their markets.
• B)consumers would be better off with more standardization of products.
• C)monopolistic competition benefits society by eliminating excess capacity in production.
• D)monopolistic competition wastes some of society's resources but the elimination of this waste does not necessarily benefit consumers.

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Definitions:

Collect

To gather or accumulate items or amounts, typically for a specific purpose or collection.

Like Terms

In algebra, terms that have the same variable raised to the same power, which can be combined by addition or subtraction.

Simplify

Reducing complexity to achieve clarity in problem-solving or communication.

Operation Indicated

A specific mathematical operation that is suggested or required by the context or problem.