In Monopolistic Competition, the Presence of a Large Number of Firms

question 33

Multiple Choice

In monopolistic competition, the presence of a large number of firms making a differentiated product means that

• A) each firm must charge the same price.
• B) each firm can set the price of its particular product.
• C) firms cannot compete with each other on the basis of price.
• D) the price is established by collusive behaviour.
• E) each firm must produce the same quantity.

---

Definitions:

Decision Rights

The authority granted to individuals or groups to make choices regarding the allocation of resources, execution of tasks, or direction of strategies.

Relevant Information

Data or facts that can influence the outcome of a decision and should be considered when making choices.

Organizational Design

The process of structuring an organization in terms of its workflow, systems, and processes to achieve its objectives and maximize efficiency and effectiveness.

Decision Maker

An individual or entity responsible for making choices or decisions, often in a business or organizational context.