Which of the following characteristics is shared by both monopolistically competitive markets and monopoly markets?

Question

Quizplus · Accepted Answer

Both monopolistically competitive and monopoly markets have downward sloping demand curves. In monopolistically competitive markets, each firm faces a slightly different demand curve due to product differentiation, while in a monopoly market, there are no close substitutes for the monopolist's product, leading to a unique downward sloping demand curve. Firms in monopolistically competitive markets have free entry, while firms in monopoly markets do not. Identical products are produced by all sellers in perfectly competitive markets, and firms in monopolistically competitive and monopoly markets are not price takers.

Which of the Following Characteristics Is Shared by Both Monopolistically