In a monopolistically competitive market, the advantage that a seller has over competitors or newcomers is:
A) consumer preference for its brand.
B) low costs from the learning curve effect.
C) economies of scale.
D) the license or patent.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, there are many firms selling differentiated products, and consumer preferences for a particular brand can give a seller an advantage over competitors. This creates some market power, as consumers may be willing to pay a higher price for a brand they prefer.

In a Monopolistically Competitive Market, the Advantage That a Seller