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Monopolistic Competition

A firm under ...

Question

A firm under monopolistic competition cannot influence market price.

A

True

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B

False

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Solution

The correct option is B False
False.
A firm under monopolistic competition has partial control over the price owing to product differentiation.

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Similar questions

If an individual firm under perfect competition cannot influence the market price, then who can and how?

Q. State whether the following statement are TRUE and FALSE.

1. There is no price discrimination under Monopolistic competition.

2. In a monopoly market, firm and industry are the same.

3. Product differentiation is not possible under perfect competition.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

Q. A monopoly firm can make abnormal profits in the long run, but not a firm under monopolistic competition. Do you agree?

Q. In monopolistic competition, firms achieve some degree of market power _________________.

Q. Give reasons or explain:

1. Single price prevails in perfect competition.

2. Price discrimination is possible under monopoly.

3. Selling cost is incurred by a firm in Monopolistic competition.

4. A monopolist can control the supply of goods.

5. Sellers and the buyers are price takers in perfect competition.

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