In the short run, a firm in a monopolistically competitive market operates much like a
A)firm in a perfectly competitive market.
B)firm in an oligopoly.
C)monopolist.
D)monopsonist.

Question

Quizplus · Accepted Answer

In the short run, a firm in a monopolistically competitive market can set prices above marginal cost and earn profits, similar to a monopolist, due to product differentiation and some degree of market power.

In the Short Run, a Firm in a Monopolistically Competitive