A Monopolistically Competitive Firm Chooses

question 78

Multiple Choice

A monopolistically competitive firm chooses

• A)both the quantity of output to produce and the price at which it will sell its output.
• B)the price of the product it sells but market forces determine the quantity it will be able to sell.
• C)the quantity of output to produce but the price of the product it sells is determined collectively by all firms in the industry.
• D)the price of the product it sells but the quantity of output to produce is agreed upon by all firms in the industry.

---

Definitions:

Alphabet

A set of letters or symbols in a fixed order used to represent the basic sounds of a language.

Sequence

An ordered list of numbers, objects, or events where each member is identified by its position.

Critical Thinking

Critical thinking is the analytical thought process of systematically evaluating information to reach reasonable conclusions.

Memory

The faculty by which the mind stores and remembers information.