Firms gain control over price in monopolistic competition by differentiating their products.

Question

Quizplus · Accepted Answer

By offering products that are perceived as unique or different from their competitors, firms in monopolistic competition are able to have some degree of control over the price they charge. Consumers may be willing to pay a higher price for a product they believe is better or more desirable than comparable products from other firms.

Firms Gain Control Over Price in Monopolistic Competition by Differentiating