Which of the following is a characteristic of monopolistic competition?
A) The actions of one firm affect all the other firms.
B) Any one company has little or no influence on price.
C) A very few companies dominate the market.
D) Customers have few viable substitutes available and because of this, are less responsive to changes in price.
E) Firms have the ability to differentiate their products from competitors.
Question 2
Bargaining power refers to ________.
A) the process of choosing to sell new products in completely new markets
B) the firm's ability to create new products and sell these to the existing customers
C) the ability of the firm to differentiate its products from competitors' products
D) the degree of influence that a producer or consumer has in influencing what the selling price will be
E) the resources and capabilities that allow a firm to grow in the future by making new products or selling to new customers
Actions of flexors and extensors.
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