The loss of efficiency that occurs in monopolistic competition has to be weighed against the gain of
A) higher wages for employees.
B) an increase in employment.
C) greater product variety.
D) reduced environmental damage.
Question 2
The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The market equilibrium with no government intervention is ________.
A) 0 tons per week
B) 400 tons per week
C) 300 tons per week
D) None of the above answers is correct.
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