If there are 40 firms in a monopolistic competitive industry, the oldest (or first) firm will have ___________ market share to qualify as the oldest (or first) firm.
A) no less than 50 percent
B) no less than 10 percent
C) no more than 5 percent
D) no more than 1 percent
E) there is no specific percentage

Question

Quizplus · Accepted Answer

In a monopolistically competitive industry, there is no specific market share percentage that qualifies a firm as the oldest or first. Market share can vary widely due to the differentiated nature of the products and the presence of many competitors.

If There Are 40 Firms in a Monopolistic Competitive Industry