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USCPA每日一练之BEC【2015-12-6】

高顿网校2015-12-04 09:32Lynn.yu
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USCPA保姆级入门攻略（全科考点解析+新手必看一本通+备考白皮书），助你快速过

Which of the following is not a feature of a firm operating in a monopolistic competition environment?

a.The firm is able to influence prices.

b.Other companies produce similar products.

c.The firm faces few barriers to entry.

d.The firm faces a downward sloping and fairly inelastic demand curve.

Answer:D

Choice D is correct. A downward sloping, fairly elastic (not inelastic) demand curve is a feature of a firm in monopolistic competition.Other choices are incorrect as they are all features of monopolistic competition.Note: Firms in a monopolistically competitive market produce "similar" goods; however, unlike in a perfectly competitive market, the goods are NOT identical or perfect substitutes. The definition of being able to "influence prices" is that the firm has a downward sloping demand curve. A firm in a monopolistic competition environment has little market control, but it is still able to influence prices. It cannot influence them as much as a pure monopoly can, but the influence is still there. The firm is still not a price-taker; it is a price-maker (hence the downward-sloping demand curve), so, again, it is able to influence to some degree.

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上一篇：USCPA每日一练之BEC【2015-12-5】
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