Demand and Marginal Revenue Curves Are Downward-Sloping for Monopolistically Competitive

question 166

Multiple Choice

Demand and marginal revenue curves are downward-sloping for monopolistically competitive firms because

• A) each firm has to take the market price as given.
• B) product differentiation allows each firm some degree of monopoly power.
• C) there are a few large firms in the industry and they each act as a monopolist.
• D) mutual interdependence among all firms in the industry leads to collusion.

---

Definitions:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

ATP

Adenosine triphosphate, a molecule that carries energy within cells, facilitating various cellular functions.

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in the body, essential for numerous metabolic processes.

Biogeographer

A scientist who studies the distribution of species and ecosystems in geographic space and through geological time.