Firms ________ in monopolistic competition due to product differentiation.

A) have no control over price
B) have blocked entry
C) gain control over price
D) are limited in number

Question

Firms ________ in monopolistic competition due to product differentiation.A)  have no control over priceB)  have blocked entryC)  gain control over priceD)  are limited in number

Andrey Troshin · Accepted Answer

Final Answer : C, Explanation :  In monopolistic competition, firms can differentiate their products from those of competitors, which gives them some control over the price they charge. This is unlike perfect competition, where firms are price takers due to the homogeneous nature of the product.

Firms ________ in monopolistic competition due to product differentiation.

A) have no control over price
B) have blocked entry
C) gain control over price
D) are limited in number

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