Asked by Xhorxhina Gjoni on Jul 08, 2024
Verified
Which statement is true?
A) The typical monopolistic competitor is a very large firm.
B) The crucial feature of monopolistic competition is that there are very few firms in the industry.
C) Under monopolistic competition,product differentiation can take place only if there are physical differences among the products.
D) None of these statements are true.
Monopolistic Competitor
A firm operating in a market structure where many companies sell products that are similar but not identical, allowing for significant differentiation and some degree of market power.
Product Differentiation
The marketing and production strategy of making a product distinguishable from other similar products in the market by emphasizing its unique features.
- Learn about the distinguishing features and specific examples of monopolistic competition.
Verified Answer
JP
Janet PeinadoJul 11, 2024
Final Answer :
D
Explanation :
None of the statements are true. A monopolistic competitor is not necessarily a large firm, there are many firms in the industry under monopolistic competition, and product differentiation can take place through non-physical differences such as branding and marketing.
Learning Objectives
- Learn about the distinguishing features and specific examples of monopolistic competition.