Firms in Monopolistic Competitive Industries

question 58

Multiple Choice

Firms in monopolistic competitive industries:
I. sell their products at a higher price than if their industry were strictly competitive.
II. sell their products at the same price as if they were in a monopoly market.
III. have a high incentive to innovate with new products and better quality.

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

---

Definitions:

Final Verdict

The ultimate decision or judgment passed by a jury or judge in a court case, or a conclusive opinion or resolution in any decision-making process.

Bystander Effect

A social psychological phenomenon wherein individuals are less likely to offer help to a victim when other people are present.

Physical Proximity

The closeness or distance between two or more entities, influencing interactions and relationships.

Power Corrupts

The tendency for individuals in positions of authority to engage in unethical or morally questionable actions due to their increased power or control.