The Product-Variety Externality Is Associated with the

question 21

Multiple Choice

The product-variety externality is associated with the

• A)producer surplus that accrues to incumbent firms in a monopolistically competitive industry.
• B)loss of consumer surplus from exposure to additional advertising.
• C)consumer surplus that is generated from the introduction of a new product.
• D)opportunity cost of firms exiting a monopolistically competitive industry.

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Definitions:

Decomposers

Organisms such as fungi and bacteria that break down dead organic material, returning nutrients to the ecosystem.

Biomass Pyramid

A graphical representation showing the relative amount of living organic matter available at each trophic level in an ecosystem.

Anaerobic Respiration

A process by which organisms produce energy without the use of oxygen.

Pyramid of Biomass

A graphical representation showing the total mass of living organisms at each trophic level in an ecosystem.