A Monopolistic Competitive Firm Is Able to Charge P >

question 47

Multiple Choice

A monopolistic competitive firm is able to charge P > MC because:

• A) they clearly have a superior product than their competitors.
• B) of product differentiation, some people will prefer their product.
• C) of high barriers to entry into the industry.
• D) monopolistic competitive firms must not set prices above P = MC.

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