Asked by Sydney Morehouse on Apr 25, 2024
Verified
Unlike a monopolistic firm's product, a monopolistically competitive firm's product
A) is homogeneous.
B) is a unique product.
C) has many close substitutes.
D) has no close substitutes.
Monopolistic Firm
A single firm that dominates a particular market or industry, often characterized by the absence of competition, which results in high prices and inferior products.
Monopolistically Competitive Firm
A Monopolistically Competitive Firm operates in a market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power in setting prices.
Homogeneous
A description of products or services that are identical in quality and cannot be distinguished from one another by consumers.
- Determine the traits and consequences of markets with monopolistic competition.
Verified Answer
Learning Objectives
- Determine the traits and consequences of markets with monopolistic competition.
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