Economists Agree That a Monopolistically Competitive Market Structure

question 68

Multiple Choice

Economists agree that a monopolistically competitive market structure

• A)lowers consumer utility because consumers pay a price higher than the marginal cost of production.
• B)is detrimental to society because it leads to a waste of scarce resources.
• C)benefits consumers because firms produce products that appeal to a wide range of consumer tastes.
• D)can eliminate any excess capacity if all firms in the industry devote more funds to differentiating their products.

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Definitions:

Incorporation Process

The series of legal steps taken to form a legally recognized company or corporation.

Jurisdiction

The official power to make legal decisions and judgments, typically a geographic area or over certain types of legal cases.

Advantages

The positive, beneficial aspects or factors contributing to success, efficiency, or achievement of goals.

Obligations and Duties

Requirements or demands made legally or morally upon a person, which are necessary to fulfill a contract or role.