Under monopolistic competition, firms produce________ a: products that are somewhat differentiated. b: a unique product without close substitutes. c: It depends on the individual firm. d: identical products

Under monopolistic competition, firms produce________ a: products that are somewhat differentiated. b: a unique product without close substitutes. c: It depends on the individual firm. d: identical products

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 8SQ

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Question

Under monopolistic competition, firms produce________

a: products that are somewhat differentiated.

b: a unique product without close substitutes.

c: It depends on the individual firm.

d: identical products

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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