One important difference between monopoly and monopolistic competition is the
A) slope of the demand curve that the firms faces.
B) point there are no barriers to entry in monopolistic competition.
C) greater restriction of output in monopolistic competition.
D) result that the marginal revenue and demand curves are the same for a monopoly.
Question 2
In the above figure, if the firm increases its output from Q2 to Q3, it will
A) reduce its marginal revenue.
B) increase its marginal revenue.
C) decrease its profit.
D) increase its profit.
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