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.

---

Definitions:

Credit Sale

A type of transaction where goods or services are provided to a customer with an agreement that payment will be made at a later date.

Customer Payment

Money received from customers as payment for goods or services.

Create Invoice

The process of generating a bill for goods delivered or services provided, detailing the amount due from the customer.

Collections Reports

Detailed reports that track the status of payments due from customers, often highlighting overdue payments or accounts receivable.