1.

How does a firm under monopolistic competition exercise partial control over price?

Answer»

Solution :A monpolistic competitive firm enjoys partial control over PRICE. It happens because by incurring heavy the firm is able to create a diferentiated IMAGE of its product in the minds of consumers. PRODUCTS are difierentiated orn the basis of brand, size, colour, shape, ETC BUYERS are attracted to buy a Parloulan produat even at a relatively higher price


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