How Do Consumers Benefit from Trade Among Monopolistically Competitive Firms

question 110

Multiple Choice

How do consumers benefit from trade among monopolistically competitive firms?

• A) Prices are the same as in autarky, but the wider choice of goods increases consumer surplus.
• B) Consumer surplus increases because prices are lower than in autarky, and there is a wider choice of goods.
• C) Prices are higher than in autarky, but the wider choice of goods increases consumer surplus.
• D) The government provides cash subsidies to consumers.

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Definitions:

Coefficient of Variation

A metric that quantifies the spread of data points around the mean within a dataset, represented as a percentage of the mean itself.

Variance

A statistical measure of the dispersion of a set of data points in a data distribution, showing how each data point differs from the mean.

Variance

A measurement of the spread between numbers in a data set, indicating how much the numbers differ from the mean.

Standard Deviation

A metric that quantifies how spread out data points are from the mean, showing the degree of variation or dispersion within a dataset.