The key characteristics of a monopolistically competitive market structure include
A) many small (relative to the total market) sellers acting independently.
B) barriers to entry are strong.
C) all sellers sell a homogeneous product.
D) sellers have no incentive to advertise their products.
Answer: A) many small (relative to the total market) sellers acting independently.
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Excess reserves are:
A. Bank reserves in excess of required reserves. B. Legal reserves in excess of lending reserves. C. Transactions deposits plus traveler's checks. D. Total reserves plus deficient reserves.
Picture a linear downward-sloping demand curve. The price elasticity of demand
a. remains the same for all price ranges on that demand curve b. varies among the price ranges on that demand curve c. varies but is always greater than one whatever the price range on that demand curve d. is always 1.0 for any price range where the price difference is $1, such as $10 and $9 e. is always zero