Monopolistically competitive firms are unable to affect the market price of their output, but are able to control the price of their own output.

Question

Quizplus · Accepted Answer

Monopolistically competitive firms have some degree of market power which allows them to control the price of their own output through product differentiation, even though they cannot affect the overall market price due to the presence of many competitors.

Monopolistically Competitive Firms Are Unable to Affect the Market Price