Asked by Emily Keith on May 02, 2024
Verified
In a monopolistically competitive industry, good product substitutes are available whereas in a monopoly they are not available.
Product Substitutes
Products that can replace each other in use or consumption, providing consumers with choices in the market.
- Acquire knowledge of the defining features of a monopolistically competitive market, including the existence of multiple companies, differentiated products, and minimal barriers to entry.
- Identify the significance of product distinction in granting companies in monopolistically competitive markets a degree of influence over price setting.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
In a monopolistically competitive industry, firms sell products that are similar but differentiated, meaning consumers can find substitutes. In a monopoly, the single firm offers a unique product with no close substitutes available.
Learning Objectives
- Acquire knowledge of the defining features of a monopolistically competitive market, including the existence of multiple companies, differentiated products, and minimal barriers to entry.
- Identify the significance of product distinction in granting companies in monopolistically competitive markets a degree of influence over price setting.
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