Which Statement Defines Business-Stealing Externality

question 21

Multiple Choice

Which statement defines business-stealing externality

• A)It is the positive externality associated with the gains of consumer surplus in a monopolistically competitive market.
• B)It occurs when one firm attempts to exactly duplicate exactly the product of another firm.
• C)It is considered to be an explicit cost of business in monopolistically competitive markets.
• D)It is the negative externality associated with entry of new firms in a monopolistically competitive market.

---

Definitions:

Neutrons

Subatomic particles with no electrical charge, found in the nucleus of an atom, and responsible for much of the mass of atoms.

Isotope

Atoms of the same element that have different numbers of neutrons, resulting in different masses but similar chemical properties.

Neutrons

Electrically neutral subatomic particles found in the nucleus of an atom, contributing to the atomic mass but not the atomic charge.