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Which of the Following Features Distinguishes Monopolistically Competitive Firms from Monopolies

Question 2

Multiple Choice

Which of the following features distinguishes monopolistically competitive firms from monopolies and oligopolies?


A) Monopolistically competitive firms cannot influence market price by virtue of their size alone while monopolies and oligopolies can.
B) Monopolistically competitive firms are not constrained by market demand while monopolies and oligopolies are.
C) Monopolistically competitive firms are price takers while monopolies and oligopolies are not.
D) Monopolistically competitive firms sell a homogeneous product while monopolies and oligopolies sell a differentiated product.

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