A Characteristic of Monopolistic Competition Is That Each Firm

question 191

Multiple Choice

A characteristic of monopolistic competition is that each firm

• A) faces perfectly elastic demand.
• B) faces a downward-sloping demand curve.
• C) has a perfectly elastic supply.
• D) has a perfectly inelastic supply.

Understand the concept and benefits of brand loyalty.

Identify who can own brands and the types of brands in the market.

Recognize the strategic role of advertising in building brand awareness.

Differentiate between brand types: national, retailer, and private-label brands.