Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 16 - Part V - Monopolistic Competition - Quick Check Multiple Choice - Page 345: 1

Answer

b) Takes its price as given by market conditions

Work Step by Step

A firm engaging in monopolistic competition has some price-making abilities due to product differentiation. Because firms produce slightly differentiated products, it retains some ability to independently price its goods instead of relying on market conditions.
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