A firm in monopolistic competition
A) has no control over the price of the product it is selling.
B) might be selling a brand name product.
C) does not advertise nor market its product.
D) Both answers A and B are correct.
E) Answers A, B, and C are correct.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms often differentiate their products through branding and marketing efforts, resulting in the sale of a brand name product. However, they still have limited control over the price of the product due to competition from other similar products in the market. The statement in option C is not correct, as many firms in monopolistic competition heavily advertise and market their products to differentiate them from their competitors.

A Firm in Monopolistic Competition