A monopolistically competitive firm will
A)charge the same price as its competitors do.
B)always produce at the minimum efficient scale of production.
C)have some control over its price because its product is differentiated.
D)produce an output level that is productively and allocatively efficient.

Question

Quizplus · Accepted Answer

Monopolistically competitive firms have some control over their prices because their products are differentiated, which means that customers may be willing to pay a premium for the unique features or qualities of their product. However, they do not have complete control over their prices because they still face competition from other firms.

A Monopolistically Competitive Firm Will