A monopolistic competitive firm is able to charge P > MC because:
A) they clearly have a superior product than their competitors.
B) of product differentiation, some people will prefer their product.
C) of high barriers to entry into the industry.
D) monopolistic competitive firms must not set prices above P = MC.
Correct Answer:
Verified
Q25: If a firm has an average product
Q26: Why might the benefits of monopolistic competition
Q27: Which of the following statement(s) is/are TRUE?
I.
Q28: Monopolistically competitive firms create:
A) zero deadweight loss.
B)
Q29: Monopolistically competitive firms earn zero profits on
Q31: A monopolistically competitive firm operates where:
A) MR
Q32: Monopolistically competitive firms are able to charge:
A)
Q33: In a stable, monopolistically competitive market for
Q34: Which of the following is/are TRUE?
I. A
Q35: Figure: Monopolistic Competition II 
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