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:

Social Stereotypes

Widely held beliefs or oversimplifications about the traits, behaviors, and characteristics of certain groups or categories of people.

Role Congruity Theory

Mainly applied to the gender gap in leadership – because social stereotypes of women are inconsistent with people’s schemas of effective leadership, women are evaluated as poor leaders.

Gender Gap

The disparity in outcomes or attitudes between men and women, often observed in political, economic, or social contexts.

Leadership Positions

Roles or titles within organizations that carry responsibility for guiding or managing groups or individuals.