Consider the monopolistically competitive market structure

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Consider the monopolistically competitive market structure

Conditions for monopolistic competition

Consider the monopolistically competitive market structure, which has some features of a perfectly competitive market and some features of a monopoly.

Complete the following table by indicating whether each attribute characterizes a perfectly competitive market, a monopolistically competitive market, both, or neither. Check all that apply.

business economics

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Answer 1

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Answer #1

Freedom of exit and entry = Both

Price is equal to marginal cost = perfectly competitive market

Flat demand curve = Perfectly competitive market

Few sellers = Monopolistically competitive market

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Answer 2

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Consider the monopolistically competitive market structure

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