Which of the following statements about product development in monopolistic competition is correct? i. Firms in monopolistic competition undertake too much product development for efficiency.
Ii) Firms in monopolistic competition undertake too little product development for efficiency.
Iii) Product development might allow the firm to make a temporary economic profit.
A) ii only
B) i and iii
C) ii and iii
D) i only
E) iii only

Question

Quizplus · Accepted Answer

Firms in monopolistic competition often undertake too little product development for efficiency because they face competition and have limited resources. However, successful product development can lead to temporary economic profits as it differentiates their products from competitors.

Which of the Following Statements About Product Development in Monopolistic