In the monopolistic competition model
A)firms are price takers
B)barriers to entry maintain some monopoly "rents" in the long run.
C)one dominant firm acts as the monopolist that is followed by the fringe of competitors.
D)none of these.

Question

Quizplus · Accepted Answer

In the monopolistic competition model, firms have some degree of market power due to product differentiation, but there are no significant barriers to entry in the long run, and firms do not act as price takers or have a dominant firm acting as a monopolist.

In the Monopolistic Competition Model