In the short run,a firm in monopolistic competition operates much like a

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In the short run, a firm in monopolistic competition has some degree of market power, allowing it to have control over its price and output. This is similar to a monopolist. However, unlike a monopolist, a firm in monopolistic competition faces competition from other similar firms, which means it cannot charge a price as high as it wants, and must consider the prices charged by its competitors. Therefore, options B and C, firm in perfect competition and price taker, are not accurate descriptions of a firm in monopolistic competition, as it has some degree of market power and faces competition.

In the Short Run,a Firm in Monopolistic Competition Operates Much