Monopolistically competitive firms can differentiate their products
A)by producing at minimum efficient scale.
B)by producing where marginal revenue equals marginal cost.
C)by equating price and average total cost.
D)through marketing.

Question

Quizplus · Accepted Answer

Monopolistically competitive firms differentiate their products through marketing strategies such as advertising, packaging, and branding. This allows them to create a perceived difference between their products and those of their competitors, giving them some pricing power and the ability to charge a slightly higher price.

Monopolistically Competitive Firms Can Differentiate Their Products