Asked by Maday Diarte on Jul 04, 2024
Verified
A monopolistically competitive firm has a downward-sloping demand curve for its product,primarily because:
A) there are no barriers to entry or exit in the long run.
B) there are many sellers in the industry.
C) its product is differentiated.
D) the price is greater than the marginal revenue.
Differentiated Product
A product that has distinct characteristics from its competitors, making it unique in the market.
Downward-Sloping Demand
A market condition where the quantity demanded of a good decreases as its price increases, adhering to the law of demand.
Barriers To Entry
Barriers to entry are obstacles that make it difficult for new competitors to enter an industry, protecting existing firms from competition and maintaining market power.
- Pinpoint the origins and significance of product distinction.
- Assess the influence of demand curves on business operations in scenarios of monopolistic competition.
Verified Answer
Learning Objectives
- Pinpoint the origins and significance of product distinction.
- Assess the influence of demand curves on business operations in scenarios of monopolistic competition.
Related questions
The Demand Curve for a Firm Operating in a Monopolistically ...
The Demand Curve for a Firm in Monopolistic Competition Is ...
Product Differentiation Under Monopolistic Competition Means That Each Firm ...
The Sources of Product Differentiation Do NOT Include ...
The _____ Demand Curve for a Firm Operating in a ...