问题 单项选择题

Consider the following statements: Statement 1: "When oligopoly firms cheat on price fixing agreements, the resulting price and output quantity approaches that of perfect competition. " Statement 2: "Monopolistic competition is inefficient because a large deadweight loss from advertising and marketing costs is a characteristic of this form of competition. " Which of the following best describes the accuracy of these statementsStatement 1Statement 2()①A. IncorrectCorrect ②B. Correct Incorrect ③C. Correct Correct

A. ①

B. ②

C. ③

答案

参考答案:B

解析:

The efficiency of monopolistic competition is not clear. While increased opportunity cost is associated with the intensive marketing and advertising activities that are characteristic of monopolistic competition, consumers definitely benefit from these selling activities because they receive information that often enables them to make better purchasing decisions. Hence the advertising and marketing costs may be more than the efficient amount, but do not represent a deadweight loss.

单项选择题
综合