Answered

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Which of the following statements is true about a firm in monopolistic competition having more control over price?

A. The firm is less successful at differentiating its product.
B. The firm is able to use predatory pricing.
C. The firm is more successful at differentiating its product.
D. The firm is able to tie in the selling of its products.

Sagot :

GinnyAnswer

Final answer:

Monopolistic competition gives firms control over price through successful product differentiation.


Explanation:

In monopolistic competition, a firm tends to have more control over price when it is more successful at differentiating its product. By creating unique products that stand out from competitors, the firm gains the ability to set prices based on perceived value, giving them a competitive edge. This contrasts with being less successful at differentiation, where competition may drive prices down as products become more homogeneous.


Learn more about Monopolistic Competition here:

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