In what sense do monopolistically competitive firms have market power? Question 1Answer a. Firms in the long run will earn zero economic profits b. The demand curve that a typical firm faces is negatively sloped c. Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands d. All of the answers are correct
In what sense do monopolistically competitive firms have market power? Question 1Answer a. Firms in the long run will earn zero economic profits b. The demand curve that a typical firm faces is negatively sloped c. Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands d. All of the answers are correct
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 7P
Related questions
Question
In what sense do monopolistically competitive firms have market power?
Question 1Answer
a.
Firms in the long run will earn zero economic profits
b.
The demand curve that a typical firm faces is negatively sloped
c.
Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands
d.
All of the answers are correct
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