Excess Capacity Is a Problem in Monopolistic Competition Because,if There

question 226

Multiple Choice

Excess capacity is a problem in monopolistic competition because,if there were fewer firms in the industry:

• A)there would be more choices for consumers.
• B)average total costs would be higher and profits would be lower.
• C)average total costs would be lower and the prices paid by consumers could be lower.
• D)there would be less need for government regulation.

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Definitions:

Etiquette

The established norms of respectful conduct among individuals in societal interactions or specific communal or professional gatherings.

Product

An item or service created through a process and offered for sale to satisfy consumer needs or wants.

Respiratory

Pertaining to the organs and processes involved in the inhalation and exhalation of air, crucial for breathing and oxygen exchange.

Cardiovascular

Pertaining to the heart and blood vessels, encompassing the entire circulatory system and its function in health and disease.