The number of firms in a monopolistically competitive market means that
A. each firm has a relatively small share of the total market since there are many firms in the industry.
B. the firms will be likely to collude since there are only a few firms in the industry.
C. all firms will have substantial monopoly power since there are so few firms in the industry.
D. firms will have a hard time earning non-negative profits since there are many firms in the industry.
Answer: A
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Fill in the blank(s) with correct word
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a. 12; 24 b. 12; 36 c. 10; 22 d. 10; 12
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A. $2,000/ton B. $500/ton C. $3,000/ton D. $1,000/ton
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