The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolistically competitive market is characterized by:
A)one firm selling a unique product.
B)many firms selling identical products.
C)many firms selling similar but differentiated products.
D)few firms selling identical products.
E)few firms selling similar but differentiated products.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolistically competitive market is characterized by:
A)one firm selling a unique product. 
B)many firms selling identical products. 
C)many firms selling similar but differentiated products. 
D)few firms selling identical products. 
E)few firms selling similar but differentiated products.

Quizplus · Accepted Answer

Monopolistic competition is defined by the presence of many firms selling products that are similar but differentiated from each other, allowing for some degree of market power and price setting by individual firms.

The Figure Given Below Shows the Cost and Revenue Curves