The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms

A) cannot influence market price by virtue of their size alone.
B) benefit from barriers to entry.
C) are price takers.
D) do not have price as a decision variable.

Question

Brooke Waszak · Accepted Answer

Final Answer : A, Explanation :  Monopolistically competitive firms are characterized by their inability to influence market prices solely based on their size, unlike monopolies or oligopolies that can significantly affect prices due to their market power or barriers to entry.

The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms

A) cannot influence market price by virtue of their size alone.
B) benefit from barriers to entry.
C) are price takers.
D) do not have price as a decision variable.

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Learning Objectives

Learning Objectives

Related questions

The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firmsA) cannot influence market price by virtue of their size alone.B) benefit from barriers to entry.C) are price takers.D) do not have price as a decision variable.

Definitions

Learning Objectives

Learning Objectives

Related questions

The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms

A) cannot influence market price by virtue of their size alone.
B) benefit from barriers to entry.
C) are price takers.
D) do not have price as a decision variable.