McqMate
| Q. |
Which of the following is a criticism of the theory of monopolistic competition? |
| A. | It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it |
| B. | When product differentiation is slight, each firm\s demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution |
| C. | When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, then the oligopoly solution provides an adequate approximation to the monopolistically competitive solution |
| D. | All of the above are correct |
| Answer» D. All of the above are correct | |
View all MCQs in
Micro economics 2No comments yet