If one were to discuss why the term "monopolistic competition" is used, the best description would be that the industry is "monopolistic" because it holds patents, but is "competitive" because other firms might invent similar patentable products. has a monopoly, but is “competitive" because there are low barriers to entry, meaning it has potential rivals. has low barriers to entry, but is "competitive" because it has few firms. has product differentiation, but is "competitive" because it has many firms. has high barriers to entry, but is "competitive" because it has many firms.

If one were to discuss why the term "monopolistic competition" is used, the best description would be that the industry is "monopolistic" because it holds patents, but is "competitive" because other firms might invent similar patentable products. has a monopoly, but is “competitive" because there are low barriers to entry, meaning it has potential rivals. has low barriers to entry, but is "competitive" because it has few firms. has product differentiation, but is "competitive" because it has many firms. has high barriers to entry, but is "competitive" because it has many firms.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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