1245EconomicsMedium
The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that?
Amonopolistically competitive markets have free entry and exit just like a monopolistic market
Bmonopolistically competitive firms charge prices equal to their marginal costs just like monopolists
Cmonopolistically competitive firms produce beyond their efficient scale and so do monopolists
Da monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist
Correct answer
D. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist
Explanation
The correct answer is a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist.