Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

why do monopolistic firms exhibit excess capacity?


Sagot :

Answer:

Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.

Explanation:

(hope this helps)

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.