-The behaviour of monopolistic competitors and oligopolists is similar because:
A)both maximize profits by equating price to marginal cost
B)neither satisfies the conditions for consumer benefit of minimum-cost and marginal-cost pricing
C)both face demand curves that are identical to marginal revenue curves
D)both have a tendency to keep price constant
E)both face mutual interdependence in their markets

Question

-The behaviour of monopolistic competitors and oligopolists is similar because:
A)both maximize profits by equating price to marginal cost 
B)neither satisfies the conditions for consumer benefit of minimum-cost and marginal-cost pricing 
C)both face demand curves that are identical to marginal revenue curves 
D)both have a tendency to keep price constant 
E)both face mutual interdependence in their markets

Quizplus · Accepted Answer

Both monopolistic competitors and oligopolists do not satisfy the conditions for consumer benefit of minimum-cost and marginal-cost pricing, as they do not produce at the lowest point on the average cost curve and do not price at marginal cost.

-The Behaviour of Monopolistic Competitors and Oligopolists Is Similar Because