Author Question: Monopolistic competition differs from monopoly because in monopolistic competition A) firms ... (Read 180 times)

schs14 · **on:** Jun 29, 2018

Monopolistic competition differs from monopoly because in monopolistic competition

A) firms maximize profits.
B) firms set marginal revenue equal to marginal cost to maximize profit.
C) firms are free to enter and exit.
D) All of the above are differences between monopoly and monopolistically competitive firms.

Question 2

When you chose to buy the second cup of coffee instead of the third bagel, which of the following is necessarily CORRECT?

A) The second coffee will give you higher marginal utility.
B) The second coffee is cheaper than the third bagel.
C) The marginal utility per dollar from the third bagel is less than the marginal utility per dollar from the second coffee.
D) Both answers A and C are correct.