1. Which of the following is not a characteristic of a monopolistically competit

Question

1. Which of the following is not a characteristic of a monopolistically competitive market structure?

a. there are no barriers to entry of new firms

b. there is a large number of independently acting small sellers

c. all sellers sell products that are differentiated

d. each firm must react to actions of other firms

2. If production displays diseconomies of scale, the long run average cost curve is

a. downward sloping

b. upward sloping

3. If fixed costs do not change, then marginal cost

a. equals the change in average variable cost divided by the change in output

b. equals the change in variable cost divided by the change in output

c. also remains constant

Explanation / Answer

1..

D Each firm must react to actions of other firms

This is not a feature as the firms continue to change in their product features, sales stragety under this structure

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