Asked by Connor Covert on May 07, 2024
Verified
In monopolistically competitive industries, the market sets the price.
Monopolistically Competitive
A market structure in which many companies sell products that are similar but not identical, allowing for competition based on price, quality, and branding.
Market Price
Today's rate at which a service or asset is being offered for buying or selling.
- Gain insights into the nature of monopolistic competition and how it stands apart from other types of markets.
Verified Answer
LA
Lessly AlanisMay 12, 2024
Final Answer :
False
Explanation :
In monopolistically competitive industries, individual firms have some control over the price because they differentiate their products, allowing them to set prices above marginal cost.
Learning Objectives
- Gain insights into the nature of monopolistic competition and how it stands apart from other types of markets.
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