Monopolistically competitive firms have some market power because______ .

Question

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Monopolistically competitive firms have some market power because they produce a differentiated product, which means that they can charge a slightly higher price for their unique product. This is different from perfect competition, where all products are identical, and firms are price takers. While there are still many sellers in a monopolistically competitive market, and there are no barriers to entry, the differentiated product is what gives firms some market power.

Monopolistically Competitive Firms Have Some Market Power Because______