Asked by Keshawn Johnson on May 09, 2024
Verified
The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are
A) large relative to the market.
B) price takers.
C) able to block the entry of other firms.
D) able to differentiate their products.
Differentiate Products
The strategy of distinguishing a product from its competitors through design, features, branding, or quality.
- Perceive the crucial role played by product differentiation in affording corporations in monopolistically competitive landscapes the capability of influencing pricing to some extent.
- Analyze the consequence of a business's size when juxtaposed with the market in scenarios of monopolistic competition, in contrast to varied market architectures.
Verified Answer
YS
Yuvraj Singh AttriMay 14, 2024
Final Answer :
D
Explanation :
Monopolistically competitive firms can differentiate their products from those of competitors, which is not a feature of perfect competition where products are homogeneous.
Learning Objectives
- Perceive the crucial role played by product differentiation in affording corporations in monopolistically competitive landscapes the capability of influencing pricing to some extent.
- Analyze the consequence of a business's size when juxtaposed with the market in scenarios of monopolistic competition, in contrast to varied market architectures.
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