Post Utme Nile University 2017 Commerce Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Nile University Commerce examination.

Post Utme Nile University 2017 Commerce Objective / Multiple Choice
Question 26 POST_UTME_NILE_UNIVERSITY • 2017 • COMMERCE • objective

In a perfectly competitive market, the law of supply and demand dictates that the price of a commodity will be determined by the intersection of the supply and demand curves. However, in a market with monopolistic competition, the price is determined by the firm's ability to differentiate its product from that of its competitors. Which of the following is a characteristic of monopolistic competition?

Answer Options

A. Firms produce a homogeneous product
B. Firms have a significant degree of market power
Correct Answer C. Firms differentiate their products from those of their competitors
D. Firms engage in price competition
Correct Answer
C
Correct Option:
Firms differentiate their products from those of their competitors

About This Question

This is Post Utme Nile University 2017 Commerce Question 26. It is one of the objective questions from the 2017 Post Utme Nile University Commerce examination.

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