Which of the following statements is not correct?
A) Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs.
B) Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry.
C) Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry.
D) Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers.
Correct Answer:
Verified
Q452: The product-variety externality arises in monopolistically competitive
Q472: Firms in industries that have competitors but
Q473: The general term for market structures that
Q474: Entry by new firms into a monopolistically
Q475: Imperfectly competitive firms are characterized by
A)horizontal demand
Q477: Which of the following pairs illustrates the
Q478: A monopolistically competitive firm is currently charging
Q479: Deadweight losses are associated with monopolistic competition:
A)In
Q480: The two types of imperfectly competitive markets
Q481: An oligopoly is a market in which
A)there
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