Asked by Yoselin Ramirez on May 12, 2024
Verified
In a monopolistically competitive industry,
A) firms are large relative to the total market.
B) firms are small relative to the total market.
C) firms can be either large or small relative to the total market.
D) there is only one firm.
Large Relative
Describing an entity or value that is significantly larger in comparison to others within a given context.
- Assess the impact of a firm's size relative to the market in monopolistic competition versus other market structures.
Verified Answer
CM
Christina MartinezMay 13, 2024
Final Answer :
B
Explanation :
In a monopolistically competitive industry, firms are typically small relative to the total market, allowing for many competitors each with a small share of the market. This contrasts with monopolies (where one firm dominates) and oligopolies (where a few firms have significant market power).
Learning Objectives
- Assess the impact of a firm's size relative to the market in monopolistic competition versus other market structures.
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