Firms in industries that have competitors but,at the same time,do not face so much competition that they are price takers,are operating in either a(n)
A)oligopoly or perfectly competitive market.
B)oligopoly or monopoly market.
C)oligopoly or monopolistically competitive market.
D)monopoly or monopolistically competitive market.

Question

Quizplus · Accepted Answer

In monopolistically competitive markets, firms face competition from many other firms selling similar but differentiated products. They have some pricing power due to the differentiation of their products, which allows them to set prices slightly higher than in a perfectly competitive market. In oligopoly markets, there are a few large firms dominating the industry and they have significant pricing power. Therefore, firms that operate in an industry with competitors but not too much competition are most likely operating in a monopolistically competitive market.

Firms in Industries That Have Competitors But,at the Same Time,do