

MCQOPTIONS
Saved Bookmarks
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 | |