Answered: Unlike a monopolistic firmʹs product, a…

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

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

a.has no close substitutes.

b.is a unique product.

c.has many close substitutes.

d.is homogeneous.

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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