The key characteristics of a monopolistically competitive industry​ are: ​[A] A large number of firms that sell differentiated products that

The key characteristics of a monopolistically competitive industry​ are: ​[A] A large number of firms that sell differentiated products that are close substitutes. ​[B] Firms can easily enter or exit a monopolistically competitive industry. ​[C] Because monopolistically competitive firms can increase their profits if they can successfully distinguish their products from those of their​ rivals, they have an incentive to engage in sales promotions and advertising. For each of the examples​ below, indicate which of the above characteristics​ (A, B or​ C) is being illustrated. There are a number of​ fast-food restaurants in​ town, and they compete fiercely. Some restaurants cook their hamburgers over open flames. Others fry their hamburgers. In​ addition, some serve broiled fish​ sandwiches, while others serve fried fish sandwiches. A few serve ice cream cones for​ dessert, while others offer frozen ice cream pies. nothing ​(Enter a single​ letter: A,​ B, or C.​) There is a vast number of colleges and universities across the country. Each competes for top students. All offer similar courses and​ programs, but some have better programs in​ business, while others have stronger programs in the arts and humanities. Still others are academically stronger in the sciences. nothing ​(Enter a single​ letter: A,​ B, or C.​)


Leave a Reply

Your email address will not be published.