A significant benefit of monopolistic competition compared with pure competition is

A) less likelihood of X-inefficiency.
B) improved resource allocation.
C) greater product variety.
D) stronger incentives to achieve economies of scale.

Question

Ayrrielle Lewis · Accepted Answer

Final Answer : C, Explanation :  Monopolistic competition leads to greater product variety because firms differentiate their products to gain a competitive edge, unlike in pure competition where products are largely homogeneous.

A significant benefit of monopolistic competition compared with pure competition is

A) less likelihood of X-inefficiency.
B) improved resource allocation.
C) greater product variety.
D) stronger incentives to achieve economies of scale.

Definitions

Learning Objectives

Learning Objectives

Related questions

A significant benefit of monopolistic competition compared with pure competition isA) less likelihood of X-inefficiency.B) improved resource allocation.C) greater product variety.D) stronger incentives to achieve economies of scale.

Definitions

Learning Objectives

Learning Objectives

Related questions

A significant benefit of monopolistic competition compared with pure competition is

A) less likelihood of X-inefficiency.
B) improved resource allocation.
C) greater product variety.
D) stronger incentives to achieve economies of scale.