Why do firms operating in a monopolistically competitive industry have the power to raise the prices of their products or services? The competition in the industry is insignificant. 42 The entry barriers in the industry are extremely high. . The number of buyers in the industry is small. 0 The firms can differentiate their product offerings.

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 4QCMC
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Why do firms operating in a monopolistically competitive industry have the power to raise
the prices of their products or services?
The competition in the industry is insignificant.
The entry barriers in the industry are extremely high.
The number of buyers in the industry is small.
0
The firms can differentiate their product offerings.
Transcribed Image Text:● Why do firms operating in a monopolistically competitive industry have the power to raise the prices of their products or services? The competition in the industry is insignificant. The entry barriers in the industry are extremely high. The number of buyers in the industry is small. 0 The firms can differentiate their product offerings.
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