Economists Agree That a Monopolistically Competitive Market Structure

question 68

Multiple Choice

Economists agree that a monopolistically competitive market structure

• A)lowers consumer utility because consumers pay a price higher than the marginal cost of production.
• B)is detrimental to society because it leads to a waste of scarce resources.
• C)benefits consumers because firms produce products that appeal to a wide range of consumer tastes.
• D)can eliminate any excess capacity if all firms in the industry devote more funds to differentiating their products.

---

Definitions:

Difficulty Eating

Trouble or discomfort experienced while attempting to consume food, which can result from various medical or psychological conditions.

Stroke

A medical condition caused by a disturbance in blood supply to the brain, leading to brain damage and loss of function.

Special Devices

Equipment or apparatus designed to perform or assist in specific tasks, often for individuals with disabilities or special needs.

Antidepressant Medications

Drugs prescribed to alleviate symptoms of depression by adjusting brain chemistry.