Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

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)