Nonprice competition in monopolistically competitive markets results in a.price equaling the minimum average total cost in long run equilibrium. b.less advertising and product differentiation than in markets without nonprice competition. c.rivalry among competing firms based on the characteristics that differentiate their products. d.consumers buying the product with the lowest price in a differentiated market.

In monopolistic market, more firms are produces similar good which is non identical. Even though…

Answered: Nonprice competition in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nonprice competition in monopolistically competitive markets results in

	a.	price equaling the minimum average total cost in long run equilibrium.
	b.	less advertising and product differentiation than in markets without nonprice competition.
	c.	rivalry among competing firms based on the characteristics that differentiate their products.
	d.	consumers buying the product with the lowest price in a differentiated market.

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