Q74Compared with perfect competition, monopolistic competition results in...a.Fewer varieties of the good produced at lower unit costs.b.A clearly more efficient social outcome.c.The same degree of variety of the good, but higher unit costs.d.Fewer varieties of the good produced at higher unit costs.e.A wider variety of the good produced, but at higher unit costs.

Perfecf competition: It is a market structure wherein there are large number of buyers and sellers…

Answered: Compared with perfect competition,…

Compared with perfect competition, monopolistic competition results in... a. Fewer varieties of the good produced at lower unit costs. b. A clearly more efficient social

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 8SQ

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Question

Q74

Compared with perfect competition, monopolistic competition results in...

Fewer varieties of the good produced at lower unit costs.

A clearly more efficient social outcome.

The same degree of variety of the good, but higher unit costs.

Fewer varieties of the good produced at higher unit costs.

A wider variety of the good produced, but at higher unit costs.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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