Which of the following best explains why monopolistically competitive firms face a downward sloping demand curve while perfectly competitive firms do not?
A) Monopolistically competitive firms sell a differentiated good.
B) Monopolistically competitive industries have only a few firms.
C) Monopolistically competitive firms have barriers to entry.
D) Only industries with free entry and exit have firms that face horizontal demand curves.
Correct Answer:
Verified
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Q46: Product differentiation
A) is why a monopolistic competitor
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A) significant barriers
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A)
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A)
Q52: One difference between perfect competition and monopolistic
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