A monopoly differs from monopolistic competition in that
A)a monopoly has market power while a firm in monopolistic competition does not have any market power.
B)a monopoly can never make a loss, but a firm in monopolistic competition can.
C)in a monopoly there are significant entry barriers, but there are low barriers to entry in a monopolistically competitive market structure.
D)a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.

Question

Quizplus · Accepted Answer

In a monopoly, significant barriers to entry prevent other firms from entering the market, whereas in monopolistic competition, there are low barriers to entry, allowing more firms to compete.

A Monopoly Differs from Monopolistic Competition in That