In what way does monopolistic competition favor consumers?
A) A limited number of sellers differentiate their products or services by offering better quality items and/or greater incentives to purchase them.
B) A large number of sellers providing virtually identical products means that no single seller can set the price.
C) A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices.
D) A single seller or provider ensures consistency of product quality and regulated pricing.
E) A large number of sellers of virtually identical products means that no single seller can set the price for these products.
C) A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices.
Explanation: C) Monopolistic competition is characterized by a market in which there are a large number of sellers providing similar goods to consumers whose purchasing choices are based on perceived differences between them. Price is often the distinction.
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