Multiple Choice
Which of the following is NOT an assumption for monopolistic competition?
A) Firms produce goods using a technology with increasing returns to scale.
B) There are many firms in the industry.
C) Firms are price takers.
D) Each firm produces a good that is similar to, but differentiated from, the goods that other firms in the industry produce.
Correct Answer:
Verified
Correct Answer:
Verified
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