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The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that ?

A. monopolistically competitive firms charge prices equal to their marginal costs just like monopolists

B. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

C. monopolistically competitive markets have free entry and exit just like a monopolistic market

D. monopolistically competitive firms produce beyond their efficient scale and so do monopolists

Related Questions on Monopoly, Competition & Labour Market Mcqs

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?

A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

B. Monopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

C. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

D. The products are differentiated in a monopolistically competitive market just like in a competitive market.