The Product-Variety Externality and the Business-Stealing Externality Are Both Spillover

question 164

True/False

The product-variety externality and the business-stealing externality are both spillover benefits of new firms entering a monopolistically competitive market.

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Definitions:

Health Psychology

A field of psychology that focuses on how biological, psychological, and social factors affect health and illness.

Diabetics

Individuals who have diabetes, a chronic condition characterized by high levels of sugar (glucose) in the blood.

Bacteria

Microscopic, single-celled organisms that thrive in diverse environments, some of which can cause diseases.

Fungi

A kingdom of spore-producing organisms that include molds, yeast, and mushrooms, often playing a crucial role in the ecosystem.