Select the statement that distinguishes monopolistic competition from perfect competition.
A: No barriers to entry/exist in monopolistic competition.
B: A firm in monopolistic competition can set its own price and output.
C: A firm in monopolistic competition makes zero economic profit in the long run.
D: Close substitutes are available in monopolistic competition.
A: No barriers to entry/exist in monopolistic competition.
B: A firm in monopolistic competition can set its own price and output.
C: A firm in monopolistic competition makes zero economic profit in the long run.
D: Close substitutes are available in monopolistic competition.
举一反三
- In monopolistic competition, the firm can increase price and still sell some output because:
- ______ have single firm in the industry. A: Perfect competition B: Monopoly C: Oligopoly D: Monopolistic competition
- Which of the following is least likely a feature that monopolistic competition and perfect competition have in common A: Output occurs where MR=MC. B: Zero economic profits in the long run. C: Extensive advertising to differentiate products.
- Monopolistic competition is the most common competition in real market. ( )
- In both perfect competition and monopolistic competition, each firm A: sells identical products. B: faces a downward-sloping demand curve its product. C: has no monopoly power. D: can enter or exit the market freely.