The major difference between monopolistic competition and perfect competition is

Question

The major difference between monopolistic competition and perfect competition is have to sell a c dity, firms in monopolistic competition cannot sell a commodity nopolistic c tion O many firms in perfect competition, but few firms in monopolistic competition O all of the above are major differences Question9 1 pts If a firm can choose between setting a high price or a low price and the firm's dominant strategy is to choose "low price," this means choosing "low price" will always maximize that firm's individual gain relative to what other firms choose choosing "low price" is always best for maximizing the welfare of all firms jointly in the market all firms in the market must choose "low price" as well to maximize total profit in the market o O all of the above

Explanation / Answer

8)b) Low barriers to entry in the perfect competition, but not in monopolistic competition. In monopolistic markets barriers to entry are high and firms entering the market are dominated by the bigger firm. In perfect competition barriers to entry are lower and firms can easily enter or exit.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.