In an economy where firms in most industries are monopolistically competitive firms,individual firms in each industry would produce ________ products and have a ________ share of industry output.

Question

Quizplus · Accepted Answer

Monopolistically competitive firms produce differentiated products, meaning that each firm offers a slightly different version of the product. This allows each firm to have a relatively large share of the industry output, as consumers may prefer some firms' products over others.

In an Economy Where Firms in Most Industries Are Monopolistically