Under monopolistic competition ________.
A)many goods and services are not standardized
B)prices adjust slowly to equilibrium
C)even if there is substantial competition in the market,some firms can set prices
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Monopolistic competition refers to a market structure in which there are many firms competing with each other, but each firm has some degree of market power due to product differentiation. This leads to many goods and services that are not standardized, as well as prices that adjust slowly to equilibrium due to the presence of differentiated products. Additionally, some firms can set prices higher than their marginal cost in order to capture some of the market power that they possess. Therefore, all of the above options are true for monopolistic competition.

Under Monopolistic Competition ________