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Monopolistic competition is like monopoly in that:__________A. both industries represent price-taking firms.B. both industries have high barriers to entry.C. neither industry has high barriers to entry.
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Monopolistic competition is like monopoly in that:__________A. both industries represent price-taking firms.B. both industries have high barriers to entry.C. neither industry has high barriers to entry.D. price changes are dictated by changes in supply.E. both industries represent price-making firms.

User Dmcshehan
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Answer:

E. both industries represent price-making firms.

Step-by-step explanation:

Monopolistic competition refers to an industry in which companies sell products or services that can be similar but they are not perfect substitutes which generates low entry barriers and they are price makers because they can influence prices given that there are not perfect substitutes for their product. According to this, the answer is that monopolistic competition is like monopoly in that both industries represent price-making firms because in a monopoly companies as in monopolistic competition, companies are able to influence the price of the product.

User Andreas F
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