Which of the following is NOT characteristic of a monopolistically
Competitive industry?
A)monopoly profits
B)many firms in the industry
C)differentiated products
D)Individual firms can influence the market price.

Question

Quizplus · Accepted Answer

Monopoly profits are not characteristic of a monopolistically competitive industry. In this type of market structure, there are many firms producing goods that are differentiated from each other, which means that they are not perfect substitutes. This leads to some degree of market power for each firm, allowing them to influence the market price to some extent. However, this does not result in monopoly profits, as there is still competition in the market.

Which of the Following Is NOT Characteristic of a Monopolistically