The kinked oligopoly demand curve does not describe the demand curve for monopolistic competition because in monopolistically competitive markets,
A)Firms are not as interdependent as oligopolistic firms.
B)Firms have no market power.
C)There is not as much product differentiation as in oligopoly.
D)There is no nonprice competition.

Question

Quizplus · Accepted Answer

In monopolistically competitive markets, firms are less interdependent than in oligopolistic markets because there are many firms and each has some degree of product differentiation, allowing for more independence in setting prices and output levels.

The Kinked Oligopoly Demand Curve Does Not Describe the Demand