A Good Example of a Monopolistically Competitive Firm Is

question 90

Multiple Choice

A good example of a monopolistically competitive firm is
1) The Gap clothing store.
2) Dairy Queen.
3) a Prince Edward Island potato farmer.

• A) 1 only
• B) 2 only
• C) 3 only
• D) 1 and 2 only
• E) 1 and 3 only

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Definitions:

Workers

Individuals engaged in any form of economic activity to earn wages or salary.

Market Wage

The prevailing rate of pay for work in a particular field or occupation in the competitive market.

Profit Maximizing

The process of increasing the difference between total revenue and total cost to achieve the highest possible profit.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, keeping all other factors constant.