Why Is Each Firm in a Monopolistically Competitive Industry Considered

question 9

Multiple Choice

Why is each firm in a monopolistically competitive industry considered as a "mini" monopoly?

• A)There is a large number of sellers in the market
• B)Each firm in monopolistic competition is a price taker
• C)The product of each firm is unique in some way or the other
• D)Each firm faces a perfectly elastic demand curve
• E)There exists a large number of close substitutes of the products

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Definitions:

United States

A country primarily located in North America, consisting of 50 states and a federal district.

Economics

The social science that studies how individuals, governments, and societies make choices about the allocation of resources to satisfy their wants and needs.

Educational Debt

The accumulation of debt by individuals as a result of borrowing money to finance their education.

Assimilation

The process by which individuals or groups adopt the culture, norms, and practices of another group, often losing aspects of their original identity.