In Monopolistic Competition, the Presence of a Large Number of Firms

Multiple Choice

In monopolistic competition, the presence of a large number of firms making a differentiated product means that

A) each firm must charge the same price.
B) each firm can set the price of its particular product.
C) firms cannot compete with each other on the basis of price.
D) the price is established by collusive behaviour.
E) each firm must produce the same quantity.