Answer:
monopolistic competitors need to lower price to sell more
Explanation:
Here is the full question :
A significant difference between a monopolistically competitive firm and a purely competitive firm is that the Group of answer choices monopolistic competitors do not seek to maximize profits. pure competitors recognize that price must be reduced to sell more output. monopolistic competitors need to lower price to sell more monopolistic competitor's demand curve is perfectly inelastic
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
