Which of the Following Is an Advantage to Society of Monopolistic

question 73

Multiple Choice

Which of the following is an advantage to society of monopolistic competition?

• A)production at the lowest possible average cost
• B)product variety
• C)only essential costs are incurred
• D)long-run profitability
• E)The firms have excess capacity so they are are always willing to increase their production.

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Definitions:

Thrift Institutions

Savings and loan associations, mutual savings banks, and credit unions, primarily engaged in accepting savings deposits and making mortgage and other loans.

Government Securities

Financial instruments issued by the government to finance its expenditures, promising to pay back with interest.

Excess Reserves

Capital reserves held by banks that surpass the minimum reserve requirements, providing liquidity and stability to the banking system.

Money Supply

The total quantity of monetary assets available in an economy at a specific time, including notes, coins, and balances held in checking and savings accounts.