What is the drawback of monopolistic competition?Multiple ChoiceBecause the business is only one of a few firms who can produce the product, the competition is fierce, which often drives the price of the product down.IncorrectBusinesses find it difficult to differentiate their products from competitors.Being the only business producing a product comes with intense pressure from consumers.Consumers cannot distinguish between your product and a competitor’s product at all.There is no real drawback to being in monopolistic competition.

Multiple ChoiceBecause the business is only one of a few firms who can produce the product, the competition is fierce, which often drives the price of the product down.Businesses find it difficult to differentiate their products from competitors.Being the only business producing a product comes with intense pressure from consumers.Consumers cannot distinguish between your product and a competitor’s product at all.There is no real drawback to being in monopolistic competition.

Monopolistic competition has which drawback compared to a monopoly?A.Governments are more likely to regulate them.B.Companies have less capital for expensive investments.C.Prices are more likely to be fixed at high levels.D.Consumers have fewer options for buying new products

Monopolistic competition is characterized by firmsMultiple Choiceproducing differentiated products.making economic profits in the long run.producing at optimal productive efficiency.producing where price equals marginal cost.

Monopolistic competition is a market characterized by:Multiple choice question.a relatively large number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively difficult market entry and exit.a relatively small number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively easy market entry and exit.a relatively large number of sellers producing a differentiated product - for which they have no control over the price they charge - in a market with relatively easy market entry and exit.a relatively large number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively easy market entry and exit.

What characteristic of monopolistic competition may help to offset the inefficiency of this market structure? A. Consumers may prefer this outcome to monopoly or monopsony. B. Consumers may feel better about the inefficiency if they know that firms earn zero profits. C. Free entry and exit imply that firms produce at minimum long-run average cost. D. Consumers may value the product diversity that allows them to choose from a wide variety of differentiated products.