Author Question: It is clear from the theory of monopolistic competition that product development is not pushed to ... (Read 18 times)

misspop · **on:** Jun 29, 2018

It is clear from the theory of monopolistic competition that product development is not pushed to its efficient level. This statement is

A) false because there is so much product differentiation in monopolistic competition.
B) true because there is little incentive to innovate in monopolistic competition.
C) false because there are so many wasteful innovations in monopolistic competition that are merely cosmetic.
D) true because price exceeds marginal revenue in monopolistic competition.

Question 2

Left unregulated, the equilibrium amount produced in the market described in the table above is

A) 550 units.
B) 600 units.
C) 650 units.
D) 700 units.