Monopolistic vs
5 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What allows firms in monopolistic competition to have some control over the price of their product?

  • Government regulations
  • Low production costs
  • High market demand
  • Product differentiation (correct)

    • What is a key characteristic of firms in perfect competition?

  • They engage in non-price competition
  • They produce unique products
  • They are price takers (correct)
  • They have significant market power

    • What limits the market power of firms in monopolistic competition?

  • Government intervention
  • Presence of close substitutes (correct)
  • Low consumer demand
  • High barriers to entry

    • In which type of competition do firms engage in non-price competition such as advertising and product differentiation?

    <p>Monopolistic competition</p> Signup and view all the answers

    What is a distinguishing feature of perfect competition compared to monopolistic competition?

    <p>Firms sell identical products</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser