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:

Cent

A cent is a monetary unit in many countries, representing one hundredth of the base unit, such as a dollar.

Accurate

Describes something that is exact and free from errors.

Cent

A monetary unit in various countries, equal to one hundredth of a base currency like the US dollar or the Euro.

Accurate

The quality of being correct or precise, without errors or mistakes.