Author Question: Monopolistic competition differs from ________. A. monopoly because firms cannot set their own ... (Read 71 times)

karen · **on:** Jun 29, 2018

Monopolistic competition differs from ________.

A. monopoly because firms cannot set their own price
B. oligopoly because firms produce differentiated goods or services
C. perfect competition because the goods or services produced are diffe-rentiated
D. monopoly because the good produced by each firm has no close subs-titute

Question 2

Compare the market supply curves in a perfectly competitive market and a monopoly market.

What will be an ideal response?

nmyers · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C Answer C describes the key difference between perfect com-petition and monopolistic competition.

Answer to Question 2

In a perfectly competitive market, the supply curve is the sum of all firms' supply curves. In a monopoly market, there is no supply curve. Supply is determined by how much the monopoly wants to produce given his marginal cost curve and the shape of the demand curve.