The excess capacity theorem implies that
a. consumers would be better off if some monopolistically competitive firms left their markets.
b. consumers would be better off with more standardization of products.
c. monopolistic competition benefits society by eliminating excess capacity in production.
d. monopolistic competition wastes some of society's resources but the elimination of this waste does not necessarily benefit consumers.
d
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Producer surplus is the difference between the lowest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
The federal government is concerned about obesity in the United States. Congress is considering two plans. One will ban the production and sale of "junk food.". The other will increase nutrition-education programs and include substantial advertising campaigns to encourage healthy eating habits. The junk-food ban program
a. and the education program will reduce the quantity of junk food sold and raise the price. b. and the education program will reduce the quantity of junk food sold and lower the price. c. will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price. d. will reduce the quantity of junk food sold and lower the price. The education program will reduce the quantity of junk food sold and raise the price.
Considering perfect competition, monopolistic competition, and monopoly, which of the market structures can have positive profits in the short run?
A decrease in RGDP will shift the demand curve ______.
a. rightward b. leftward c. upward d. downward