Which of the Following Is Always Associated with Monopolistic Competition

question 6

Multiple Choice

Which of the following is always associated with monopolistic competition?

• A) Identical products
• B) Economic profits in the short run
• C) MR lies above the demand curve
• D) Demand curves become more inelastic as new entry occurs
• E) Product differentiation

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Definitions:

Customer Demands

The specific needs and desires of customers that influence their purchasing behavior and choices.