Which of these is a key difference between a perfectly competitive firm and a monopolistically competitive firm?
a. A monopolistically competitive firm faces a downward-sloping demand curve, while a perfectly competitive producer faces an upward-sloping demand curve.
b. A monopolistically competitive firm has no control over the market price, while a perfectly competitive firm has some control over the market price.
c. A monopolistically competitive firm faces a horizontal demand curve, while a perfectly competitive producer faces a downward-sloping demand curve.
d. A monopolistically competitive firm has some control over the market price, while a perfectly competitive firm has no control over the market price.
d
You might also like to view...
Explain what would happen to the equilibrium price and quantity of oranges if the supply of oranges increased while the demand for oranges decreased
What will be an ideal response?
Labor-market discrimination based solely on age is illegal in the United States
a. True b. False Indicate whether the statement is true or false
Which of the following components of AE (AD) accounts for approximately 50% of Ireland's GDP?
(a) Domestic household expenditure. (b) Exports (X). (c) Investment (I). (d) The net expenditure of central and local government
As a response to the 2008 recession, the U.S. government employed expansionary policy, and the economy returned to its level of potential output.
Answer the following statement true (T) or false (F)