evaluate-the-impact-of-having-a-separate-marginal-revenue-curve-from-the-demand-

Question

Evaluate the impact of having a separate marginal revenue curve from the demand curve in monopolistic competition.

Accepted Answer

It allows firms to have pricing power and differentiate products.

Answer

It results in a perfectly elastic demand curve.

Answer

It eliminates the need for cost analysis in pricing decisions.

Answer

It forces firms to accept market prices without differentiation.