13
QuizMultiple Choice

Market Structures and Competition — Unit test

Question 13 • * HSA 26-27 Economics

Who sets the price in a monopolistic competition?

Answer
A
producers and consumers
B
consumers only
C
government
D
producers only

Explanation

In monopolistic competition, producers set prices for their differentiated products, but they must consider what consumers are willing to pay and the prices of competing products. So both producers and consumers influence the price. The correct choice is producers and consumers.

AI-written and checked against the verified answer.

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