Asked by Manuel Rodriguez on Apr 25, 2024
Verified
A monopolistically competitive firm influences market price by virtue of its size.
Influences Market Price
Factors or conditions that affect the selling price of goods or services in a market, including supply, demand, competition, and external economic conditions.
- Acknowledge the contribution of product differentiation in empowering firms in markets characterized by monopolistic competition to exert limited control over pricing.
Verified Answer
TV
Tessa Vandegrift7 days ago
Final Answer :
False
Explanation :
In a monopolistically competitive market, firms have some degree of market power due to product differentiation, but no single firm is large enough to influence market price significantly because there are many firms in the industry.
Learning Objectives
- Acknowledge the contribution of product differentiation in empowering firms in markets characterized by monopolistic competition to exert limited control over pricing.
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