Because There Are Many Firms in Monopolistic Competition Markets

question 54

Multiple Choice

Because there are many firms in monopolistic competition markets,

• A)everyone is a price taker.
• B)producers do not have to consider the reactions of rival firms.
• C)government often encourages consolidation to reduce the number of competitors.
• D)price controls may be implemented.
• E)the many competitors will focus on product differentiation.

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Definitions:

Constitutional Government

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