The Product-Variety Externality and the Business-Stealing Externality Are Both Spillover

question 164

True/False

The product-variety externality and the business-stealing externality are both spillover benefits of new firms entering a monopolistically competitive market.

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Definitions:

Unconscious Patronization

Subtle, often unintentional, discriminatory behavior towards a marginalized group, influenced by unconscious biases.

Ingroup

A social group to which a person psychologically identifies as being a member, often leading to favoritism and loyalty towards the group.

Outgroup

A social group with which an individual does not identify, often leading to them being viewed as "them" in contrast with the "us" of the ingroup.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.