In Monopolistic Competition,the Firm Can Increase Price and Still Sell

question 46

Multiple Choice

In monopolistic competition,the firm can increase price and still sell some output because

• A) there is no free entry.
• B) they are producing a product for which there is no close substitute.
• C) they are colluding with other firms to set price.
• D) they are producing a product that has some degree of differentiation.

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