Because Consumers Value Product Variety

question 48

Multiple Choice

Because consumers value product variety

• A) society must be more efficient with monopolistic competition than with perfect competition.
• B) the inefficiency and deadweight loss created by monopolistic competition is offset.
• C) in the long run, monopolistically competitive firms earn an economic profit.
• D) monopolistically competitive industries are efficient.

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Definitions:

Cognitive Perspective

An approach in psychology that focuses on the way people think, understand, and perceive the world around them.

Behaviour

The behavior or responses of a person when influenced by external or internal factors.

Unconscious Mind

A part of the mind that is not accessible to conscious thought, containing desires, feelings, and memories below the level of conscious awareness.

Profession

A paid occupation, especially one that involves prolonged training and a formal qualification.