Asked by Brandy Thatcher on Apr 27, 2024
Verified
The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms
A) cannot influence market price by virtue of their size alone.
B) benefit from barriers to entry.
C) are price takers.
D) do not have price as a decision variable.
Price Takers
Economic agents who accept market prices as given because they do not have enough market power to influence those prices.
- Differentiate among monopoly, oligopoly, monopolistic competition, and perfect competition by focusing on features such as pricing influence, product discrepancy, and barriers against market entry.
Verified Answer
BW
Brooke WaszakApr 30, 2024
Final Answer :
A
Explanation :
Monopolistically competitive firms are characterized by their inability to influence market prices solely based on their size, unlike monopolies or oligopolies that can significantly affect prices due to their market power or barriers to entry.
Learning Objectives
- Differentiate among monopoly, oligopoly, monopolistic competition, and perfect competition by focusing on features such as pricing influence, product discrepancy, and barriers against market entry.
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