Question:
Which of the following is a criticism of the theory of monopolistic competition?
| A. |
It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it |
B. |
When product differentiation is slight, each firm\s demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution |
C. |
When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, then the oligopoly solution provides an adequate approximation to the monopolistically competitive solution |
D. |
All of the above are correct |
Answer» d. All of the above are correct |
Note: |
The above multiple-choice question is for all general and Competitive Exams in India. |