A Monopolistically Competitive Firm Differs from a Perfectly Competitive Firm

question 51

Multiple Choice

A monopolistically competitive firm differs from a perfectly competitive firm in that:

• A)the monopolistically competitive firm faces a downward-sloping demand curve.
• B)the demand for the monopolistically competitive firm's product is fairly inelastic.
• C)entry into a monopolistic market is restricted while entry is free in a perfectly competitive market.
• D)a monopolistically competitive firm is a price taker in the market.

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