Consumers' differing tastes are one reason why monopolistic:
A)firms encounter large barriers to entry.
B)competitors earn a positive economic profit in the long run.
C)competitors set price at MC.
D)competitors are similar to monopolists.

Question

Quizplus · Accepted Answer

Monopolistic competitors are similar to monopolists because they have some degree of market power due to product differentiation, which is influenced by consumers' differing tastes.

Consumers' Differing Tastes Are One Reason Why Monopolistic