Steve Is About to Start Up a Business in a Monopolistically

question 88

Multiple Choice

Steve is about to start up a business in a monopolistically competitive market.Which of the following can he expect?

• A)He can expect market entry to be difficult as there exist entry barriers.
• B)He can expect to enjoy a huge market power.
• C)He can expect to face a highly inelastic demand curve.
• D)He can expect to find close substitutes of the product he is planning to produce.
• E)He can expect to face an infinitely elastic demand curve.

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