The price for a firm under monopolistic competition is _____ revenue.
A)equal to marginal
B)greater than marginal
C)less than marginal
D)greater than total

Question

Quizplus · Accepted Answer

In monopolistic competition, firms have some power to set prices above marginal cost due to product differentiation. This means the price for a firm under monopolistic competition is greater than marginal revenue, allowing the firm to earn a profit above what would be possible in perfect competition.

The Price for a Firm Under Monopolistic Competition Is _____