객관식
Which of the following statements is true?
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13. Monopolistic Competition
Revenue in Monopolistic Competition
객관식
In monopolistic competition, firms have ________ power to set the price of its produce because ________
A
No; there are no barriers to entry
B
Some; of product differentiation
C
No; of product differentiation
D
Some; there are barriers to entry
검증된 단계별 안내1
Understand the concept of monopolistic competition: It is a market structure where many firms sell products that are similar but not identical. Each firm has some degree of market power due to product differentiation.
Recognize that in monopolistic competition, firms have some power to set prices because their products are differentiated from those of their competitors. This differentiation can be based on quality, branding, location, or other attributes.
Identify that the presence of product differentiation allows firms to have some control over their pricing, as consumers may prefer one product over another due to these differences.
Acknowledge that there are no significant barriers to entry in monopolistic competition, which means new firms can enter the market if they perceive an opportunity to profit.
Conclude that the correct answer is 'Some; of product differentiation' because firms have some power to set prices due to the unique characteristics of their products, despite the lack of barriers to entry.
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