Monopolistic competition is different from monopoly because firms:
A)have some power to set prices.
B)have a downward-sloping demand curve.
C)face some competition.
D)have a downward-sloping marginal revenue curve.

Question

Quizplus · Accepted Answer

Monopolistic competition differs from monopoly primarily because firms in monopolistic competition face competition from other firms, whereas a monopoly has no competitors. This competition among firms in monopolistic competition limits the market power of any single firm.

Monopolistic Competition Is Different from Monopoly Because Firms