A monopolistically competitive firm usually charges more than a perfectly competitive firm because
A) it is part of a group of firms that has formally agreed to control the price and the output of a product.
B) its primary goal is to reap monopoly profits by replacing competition with cooperation.
C) producing homogenous output is more expensive than producing differentiated output.
D) producing differentiated output is more expensive than producing homogenous output.
E) it has a monopoly,but potential entrants exist in the form of contestable markets.
Correct Answer:
Verified
Q88: A monopolistically competitive firm is inefficient because
Q89: The difference between price and marginal cost
Q90: In a monopolistically competitive industry,price
A) will be
Q91: You operate a monopolistically competitive firm and
Q92: A competitive firm would have
A) more elastic
Q94: Monopolistic competition is inefficient because
A) firms earn
Q95: Perfect competition and monopolistic competition are similar
Q96: Both perfectly competitive and monopolistically competitive industries
Q97: The concept of markup under monopolistic competition
Q98: One could argue correctly that
A) all firms
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