Which of the Following Is True of a Typical Firm

question 107

Multiple Choice

Which of the following is true of a typical firm in a monopolistically competitive industry?

• A)Product differentiation allows a successful firm to emerge as a market leader in the industry.
• B)All firms have identical cost structures.
• C)The more successful firms have an incentive to merge in order to exert greater market power.
• D)Each firm acts independently.

---

Definitions:

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Rude Person

An individual displaying impolite or ill-mannered behavior.

Fugitive

A person who has escaped from a place or is in hiding, often to avoid arrest or persecution.

Fresh Footprints

Recent marks or impressions left on the ground by feet, indicating the presence or past movement of a person or animal.