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
You might also like to view...
The labor market is in equilibrium when:
a. the demand curve lies above the supply curve. b. both demand and supply curves are positively sloped. c. both demand and supply curves are negatively sloped. d. the demand curve intersects the supply curve. e. the demand curve is negatively sloped but the supply curve is positively sloped.
The value of money is based on
a. the amount of gold backing the money. b. its designation by the government as legal tender. c. the level of interest rates. d. the goods and services that a given amount of money will buy.