The number of firms in a monopolistically competitive market means that
A) all firms will have substantial monopoly power since there are so few firms in the industry.
B) each firm has a relatively small share of the total market since there are many firms in the industry.
C) the firms will be likely to collude since there are only a few firms in the industry.
D) firms will have a hard time earning non-negative profits since there are many firms in the industry.
B
You might also like to view...
What is the Law of One Price?
If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is: a. rivalrous and excludable
b. non-rivalrous and excludable. c. rivalrous and non-excludable. d. non-rivalrous and non-excludable.
The figure below shows Ava's demand curve for days in the hospital. The marginal cost of an additional day in the hospital is $200. 
If Ava had to pay the entire marginal cost of spending a day in the hospital, then she would choose to stay ________ day(s).
A. 0 B. 2 C. 3 D. 1
Your younger brother likes to yell at the dinner table so the rest of the family will give him what he wants. Assume that this has proved quite successful for him time and again
Let's say that you are from a family of eight and every member of your family starts to adopt the same strategy. Would this work? Why or why not? Explain.