Which of the Following Features Distinguishes Monopolistically Competitive Firms from Monopolies

question 66

Multiple Choice

Which of the following features distinguishes monopolistically competitive firms from monopolies and oligopolies?

• A) Monopolistically competitive firms cannot influence market price by virtue of their size alone while monopolies and oligopolies can.
• B) Monopolistically competitive firms are not constrained by market demand while monopolies and oligopolies are.
• C) Monopolistically competitive firms are price takers while monopolies and oligopolies are not.
• D) Monopolistically competitive firms sell a homogeneous product while monopolies and oligopolies sell a differentiated product.

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Definitions:

Initial Value

The beginning amount or worth of an object, financial asset, or parameter before it undergoes any changes.

Final Value

An alternative term for future value,indicating the amount of money an investment will grow to at a future date, based on specified conditions.

Airfares

The cost of a passenger flight ticket.

Winnipeg

A city in Canada, known as the capital of the province of Manitoba, with a diverse economy and cultural scene.