Asked by Hailey Gallant on May 10, 2024
Verified
Monopolistically competitive firms are unable to affect the market price of their output, but are able to control the price of their own output.
Market Price
The going rate for purchasing or selling a good or service in a specified market at this time.
Output Price
Refers to the price at which goods or services are sold in the market, affecting producers' revenue.
- Comprehend the idea of monopolistic competition and its distinctions from various market structures.
Verified Answer
BR
Brooke RewisMay 14, 2024
Final Answer :
True
Explanation :
Monopolistically competitive firms have some degree of market power which allows them to control the price of their own output through product differentiation, even though they cannot affect the overall market price due to the presence of many competitors.
Learning Objectives
- Comprehend the idea of monopolistic competition and its distinctions from various market structures.
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