Question

Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, “What is the right amount of variety? Can there be too many varieties of shoes, for example?”

Answer 1

No, there is a limit to variety. Producing different varieties gives customers the chance to choose among many tastes of same product and they can choose it according to their tastes. . It also provides a competitive market for firms to produce different varieties of same product. But, also too much variety is not good as it increases the cost for a firm to produce good and then to advertise it which is unnecessary . hence variety must be made considering the taste of majority of consumers