In monopolistic competition, the firm can increase price and still sell some output because:
举一反三
- Select the statement that distinguishes monopolistic competition from perfect competition. A: No barriers to entry/exist in monopolistic competition. B: A firm in monopolistic competition can set its own price and output. C: A firm in monopolistic competition makes zero economic profit in the long run. D: Close substitutes are available in monopolistic competition.
- Under the monopolistic competition, there are many competitors in the market. But each firm sells a slightly different product, which can form some market leaders. Each firm makes independent decisions about price and output.
- In the model of monopolistic competition, compared to a firm with a lower marginal cost, a firm with a higher marginal cost will set a ________ price, produce ________ output, and earn ________ profits. A: higher; less; more B: higher; less; less C: lower; less; less D: lower; more; more
- ______ have single firm in the industry. A: Perfect competition B: Monopoly C: Oligopoly D: Monopolistic competition
- In perfect competition, each firm ________. A: can influence the price that it charges B: produces as much as it can C: is a price taker D: faces a perfectly inelastic demand for its product