Which of the following is NOT an assumption for monopolistic
Competition?
A)Firms produce goods, using a technology with increasing returns to scale.
B)There are many firms in the industry.
C)Firms have some control over the price of the product.
D)Each firm produces a good that is similar to, but differentiated from, the goods that other firms in the industry
Produce.

Question

Quizplus · Accepted Answer

Monopolistic competition assumes that firms use a technology with constant returns to scale, not increasing returns to scale.

Which of the Following Is NOT an Assumption for Monopolistic