Answered: Unlike a monopolistic firmʹs product, a…

Unlike a monopolistic firmʹs product, a monopolistically competitive firmʹs product a. is a unique product. b. has no close substitutes. c. is homogeneous. d. has many close substitutes.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 1.1P

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Question

Unlike a monopolistic firmʹs product, a monopolistically competitive firmʹs product

is a unique product.

has no close substitutes.

is homogeneous.

has many close substitutes.

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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