Principles of Microeconomics
Name Pratik Kacha
Choose the one alternative that best completes the statement or
All of the following characteristics are common to both monopolistic competition
and perfect competition
A) the market demand curves are
B)firms act to maximize profit.
C) entry barriers into the industries are low.
D) firms take market prices as given.
2) Which of the following is true for a firm with a downward
sloping demand curve for its product?
3) When a monopolistically competitive firm cuts its price to increase its sales, it
experiences a loss in revenue due to the