Since a monopolistically competitive firm faces a downward-sloping demand curve,its price will be _____ revenue.
A)equal to marginal
B)less than marginal
C)greater than marginal
D)equal to total

Question

Quizplus · Accepted Answer

In monopolistic competition, firms have some market power, allowing them to set prices above marginal revenue due to the downward-sloping demand curve.

Since a Monopolistically Competitive Firm Faces a Downward-Sloping Demand Curve,its