In Monopolistic Competition, Excess Capacity Results from

question 269

Multiple Choice

In monopolistic competition, excess capacity results from

• A) the presence of a large number of buyers.
• B) the mobility of firms into and out of the industry.
• C) imperfect information about price.
• D) product differentiation.

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Definitions:

Load

The amount of electrical power or physical weight that is applied or carried by a system or component.

Spool Valves

Mechanical devices used in hydraulic and pneumatic systems to control the flow of fluid or air, typically by moving a cylindrical spool within a housing to open or close channels.

Hydraulically

Pertaining to or involving the movement or operation of devices through the pressure of liquids in motion.

Electrically

Pertaining to the use or operation by electricity, involving electronic circuits or devices.