Asked by Chiara Houston on May 01, 2024
Verified
A monopolistically competitive firm influences market price because of product differentiation.
Product Differentiation
The act of differentiating a product or service to appeal more to a specific target audience, thereby making it stand out from competitors.
- Understand the function of product diversification in allowing enterprises within monopolistically competitive environments to possess certain pricing authority.
Verified Answer
TB
talal bagherMay 02, 2024
Final Answer :
True
Explanation :
In a monopolistically competitive market, firms have some degree of market power due to product differentiation, which allows them to influence the price of their product to some extent.
Learning Objectives
- Understand the function of product diversification in allowing enterprises within monopolistically competitive environments to possess certain pricing authority.
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