The situation of monopolistic competitionis created byA.Small number of producers of acommodityB. Lack of homogeneity of the productproduced by different firmsC. Imperfection of the market for thatproductD. All of the above

The situation of monopolistic competition is created by A. Small number of producers of a commodity Lack of homogeneity of the product produced by different firms В. C. Imperfection of the market for that product D. All of the above

The situation of monopolistic competition is created by A. Small number of producers of a commodity Lack of homogeneity of the product produced by different firms В. C. Imperfection of the market for that product D. All of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The situation of monopolistic competition
is created by
A.
Small number of producers of a
commodity
B. Lack of homogeneity of the product
produced by different firms
C. Imperfection of the market for that
product
D. All of the above

Expert Solution

Step 1

So monopolistic competition are that types of market in which the nature of profits are always they earn supernormal profit and the slope of demand curve in the monopolistic type of the competition is always known to be negative Sloped relatively.

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