Monopolistic competitive firm fixes the price of its product

Related MCQs

• Under monopolistic competition, the demand curve of the product of an individual firm depends on the nature and prices of close substitutes
• If price is equal to average cost, in the short-run, the competitive firm can earn
• If price is greater than average cost, in the short-run, the competitive firm can earn
• If price is less than average cost, in the short-run, the competitive firm can earn
• Increase or decrease in the level of production by a monopolistically competitive firm have ------- impact on price and output decisions of other firms
• The demand curve faced by the a monopolistically competitive firm is very elastic if the degree of product differentiation is
• A firm under monopolistic competition advertise because
• Under monopolistic competition, an increase in the number of firms producing close substitutes will make the demand curve of each firm
• Under monopolistic competition, the long run equilibrium of the firm is established at the
• Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stabilityReason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions