By building a loyal customer base through product differentiation, each monopolistically competitive firm has some control over the price it charges.

Name: By building a loyal customer base through product differentiation, each monopolistically competitive firm has some control over the price it charges.
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Question

Quizplus · Accepted Answer

In monopolistic competition, firms differentiate their products, which gives them some degree of market power to set prices above marginal cost, unlike in perfect competition.

By Building a Loyal Customer Base Through Product Differentiation, Each