For a monopolistic competitive firm: a) price is less than marginal revenue at all levels of...
Question:
For a monopolistic competitive firm:
a) price is less than marginal revenue at all levels of output.
b) price is greater than marginal revenue at all levels of output except for the first unit.
c) price equals marginal revenue at all levels of output.
d) the demand curve is perfectly inelastic and marginal revenue is zero.
Monopolistic Competition:
A market structure, that combines some features of monopoly and perfect competition, is monopolistic competition. The monopolistic feature of this market structure is the relative price control. On the other hand, the features that it shares with the perfect competition are a large number of suppliers and free entry into the market.
Answer and Explanation: 1
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View this answer- The correct answer is b) price is greater than marginal revenue at all levels of output except for the first unit.
A monopolistic competitive firm is...
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Monopolistic Competition: Definition, Theory, Characteristics & Examples
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Chapter 3 / Lesson 56
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Learn the monopolistic competition definition with examples. Study monopolistic competition vs. perfect competition and other market types to learn the differences.
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