The monopolistic competitor is a
A)price taker.
B)price searcher.
C)single seller of a good with no close substitutes.
D)firm that faces a horizontal demand curve.
E)b and c

Question

Quizplus · Accepted Answer

Monopolistic competitors are price searchers because they have some degree of market power that allows them to set prices within a certain range, unlike perfect competitors who are price takers. They do not face a perfectly elastic demand curve (horizontal) nor are they single sellers of a good with no close substitutes.

The Monopolistic Competitor Is a