109
QuizMultiple Choice

Unit 2 Test

Question 109 • (OC27) Economics-2102310-Sem-Meadows

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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