In monopolistically competitive market structure,because each good sold in the market is ____,each firm is considered a ____.
A) slightly different; price maker
B) slightly different; price taker
C) the same; price maker
D) the same; price taker

Question

Quizplus · Accepted Answer

In a monopolistically competitive market structure, each firm produces a slightly different product, making them a price maker rather than a price taker as in a perfectly competitive market where all firms sell the same product. The differentiation of goods also generates a downward-sloping demand curve for each firm, allowing them to have some control over the price at which they sell their product.

In Monopolistically Competitive Market Structure,because Each Good Sold in the Market