Which of the Following Statements Is True About Monopolistically Competitive

question 319

Multiple Choice

Which of the following statements is true about monopolistically competitive firms?

• A)Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers.
• B)Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products.
• C)Like perfectly competitive firms, monopolistically competitive firms maximize their profits by settling price equal to marginal cost.
• D)Unlike perfectly competitive firms, monopolistically competitive firms face perfectly inelastic demand curves.

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Definitions:

Immune Systems

Complex networks of cells, tissues, organs, and the substances they produce that helps the body fight infections and other diseases.

Minor Infections

Infections that are usually mild, often easily treated or resolving on their own, such as a common cold or a minor wound infection.

Overprotected

Describes an individual, usually a child, who is guarded from potential risks or dangers to an extent that may limit their development or independence.

Bacteria

Microscopic, single-celled organisms that are abundant in most environments on Earth, serving various roles in ecosystems and human health.