Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A) worse because consumers get fewer choices.
B) worse because consumers pay a higher price.
C) better because consumers pay a lower price.
D) better because consumers get less output.

Question

Quizplus · Accepted Answer

In monopolistic competition, there are more firms competing which leads to more choices for consumers and more pressure to keep prices low. Therefore, the market results are usually expected to be better because consumers can pay a lower price.

Compared to Monopoly, the Market Results with Monopolistic Competition Are