Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?
A) Product variety benefits consumers.
B) Firms make zero economic profit in the long run.
C) Firms can make an economic profit in the short run.
D) Marginal cost equals price in the long run.
E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.

Question

Quizplus · Accepted Answer

Product variety benefits consumers, which can lead to increased satisfaction and welfare.

Even Though Monopolistic Competition Results in Inefficiency, It Does Have