Describe three features of monopolistic competition that differentiate it from monopoly
What will be an ideal response?
First, firms in monopolistic competition cannot influence market price as greatly because they are small relative to the size of the market. Second, many good substitutes exist in a monopolistically competitive industry. Lastly, there are barriers to entry.
Economics
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Decision makers who try their best for rationality but are constrained by limited information and processing abilities are referred to as:
a. irrational. b. partially rational. c. boundedly rational. d. perfectly rational.
Economics
Explain how the firm decides on the optimal amount of research and development
What will be an ideal response?
Economics