One Prediction About Monopolistic Competition Is That It Has Higher

question 80

Multiple Choice

One prediction about monopolistic competition is that it has higher unit costs than perfect competition.But it is unreasonable to conclude that monopolistic competition is therefore bad for consumers because

• A)consumers benefit from lower prices.
• B)consumers benefit from an increased variety of products.
• C)consumers benefit because of an increase in quantity available.
• D)consumers benefit from products becoming more homogeneous.
• E)higher production costs means more employment.

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Definitions:

Parallel Circuit

An electrical circuit where components are connected across common points or junctions, providing multiple paths for current.

Inductive Reactance

The resistance to the change in current flow by an inductor in an AC circuit, measured in ohms and dependent on frequency.

Inductive Reactance

Inductive reactance is the opposition to the change in current flow by an inductor, and it increases with an increase in the frequency of the applied electric signal.

Parallel Circuit

An electrical circuit configuration where multiple paths are available for current flow, resulting in each component having the same voltage applied.