With Respect to Monopolistic Competition

question 453

Multiple Choice

With respect to monopolistic competition,

• A)both the business-stealing externality and the product-variety externality are positive externalities.
• B)the business-stealing externality is a positive externality, while the product-variety externality is a negative externality.
• C)the business-stealing externality is a negative externality, while the product-variety externality is a positive externality.
• D)both the business-stealing externality and the product-variety externality are negative externalities.

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Definitions:

Constant Over Time

Refers to a variable or a condition that does not change as time progresses, remaining stable in both the short term and the long term.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing labor economics and statistics.

Current Population Survey

A monthly survey of households conducted by the Bureau of Census for the Bureau of Labor Statistics to gather employment and unemployment data.

Adult Population

The segment of the population that is considered to be of working age and is often analyzed in economic studies for labor force and unemployment statistics.