A. be less costly to create.
B. sell at a high price.
C. use a nonrenewable resource.
D. satisfy the wants and needs of consumers.
answer A. be less costly to create.
How would a manufacturer benefit by using fewer scarce resources?
a. The product would provide a more satisfactory profit.
b. The product would be less expensive to produce.
c. The product would better satisfy consumer needs.
d. The product would be popular and readily available.
ANSWER: The product would be less expensive to produce.
Monopolistic Competition Like pure competitors, mo- nopolistic competitors cannot afford to be complacent. But unlike pure competitors, which sell standardized products, monopolistic competitors have a strong profit incentive to en- gage in product innovation. This incentive to differentiate products from those of competitors stems from the fact that sufficiently novel products may create monopoly power and thus economic profit. There are many examples of innovative firms (McDonald’s, Apple, Starbucks, Redbox video rentals) that started out as monopolistic competitors in localized markets but soon gained considerable national market power, with the attendant economic profit.
For the typical firm, however, the shortcomings of mo- nopolistic competition in relation to technological advance are the same as those of pure competition. Most monopolistic competitors remain small, which limits their ability to secure inexpensive financing for R&D. In addition, monopolistic competitors find it difficult to extract large profits from tech- nological advances. Any economic profits from innovation are usually temporary because entry to monopolistically competitive industries is relatively easy. In the long run, new entrants with similar goods reduce the demand for the inno- vator’s product, leaving the innovator with only a normal profit. Monopolistic competitors therefore usually have rela tively low expected rates of return on R&D expenditures.
Here is some popular monopoly company lists:
Sirius XM Holdings