Monopolistic competition is different from monopoly because of which one of the following features?
A)firms with some power to set prices
B)downward-sloping demand curve
C)firms facing some competition
D)downward-sloping marginal revenue curve

Question

Quizplus · Accepted Answer

Monopolistic competition involves multiple firms competing in a market with differentiated products, leading to a downward-sloping demand curve and each firm having some power to set prices. However, unlike in monopoly, firms in monopolistic competition still face competition from other firms producing similar but not identical products, making it different from monopoly. The shape of the marginal revenue curve can vary depending on the specific market conditions but is not a defining characteristic that sets monopolistic competition apart from monopoly.

Monopolistic Competition Is Different from Monopoly Because of Which One