Question

A firm in Monopolistic competition?

A) Has market sharing agreements
b) decides its own price
C) Colludes with others
D) Considers reaction of rival firms​

Answer 1

Answer:

As in a monopoly, firms in monopolistic competition are price setters or makers, rather than price takers. However, the firms nominal ability to set their prices is effectively offset by the fact that demand for their products is highly price elastic.