MCQOPTIONS
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| 1. |
The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that ? |
| A. | monopolistically competitive firms charge prices equal to their marginal costs just like monopolists |
| B. | a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist |
| C. | monopolistically competitive markets have free entry and exit just like a monopolistic market |
| D. | monopolistically competitive firms produce beyond their efficient scale and so do monopolists |
| Answer» C. monopolistically competitive markets have free entry and exit just like a monopolistic market | |