Asked by Mojarai Johnson on Jul 08, 2024
Verified
Which statement is true?
A) Most monopolistic competitors are large firms.
B) Monopolistic competitors produce goods or services for which there are no close substitutes.
C) Monopolistic competitors usually operate at the minimum point of their average total cost curves.
D) None of these statements are true.
Monopolistic Competitors
Firms that have many competitors but distinguish themselves through product differentiation, allowing them some control over their prices.
Average Total Cost Curves
A graphical representation showing the average cost per unit of output at different levels of production.
- Gain insight into the traits and illustrations of monopolistic competition.
Verified Answer
EN
Edgar N. BarrozoJul 12, 2024
Final Answer :
D
Explanation :
Monopolistic competitors are often not large firms, they produce goods or services that do have close substitutes, and they typically do not operate at the minimum point of their average total cost curves, making all the provided statements false.
Learning Objectives
- Gain insight into the traits and illustrations of monopolistic competition.