A Significant Benefit of Monopolistic Competition Compared with Pure Competition

question 27

Multiple Choice

A significant benefit of monopolistic competition compared with pure competition is

• A) less likelihood of X-inefficiency.
• B) improved resource allocation.
• C) greater product variety.
• D) stronger incentives to achieve economies of scale.

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Definitions:

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Intermediate Planning

The process of setting goals and outlining strategies for a middle-range time frame, typically covering 1 to 3 years.

Long-Term Planning

The process of setting goals and outlining strategies for future activities over an extended period, typically beyond five years.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.