In monopolistic competition, what effect do price variations generally have on the market as a whole? no effect little effect great effect indeterminable effect

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Business

Natalya Glass

19 July, 04:45

In monopolistic competition, what effect do price variations generally have on the market as a whole? no effect little effect great effect indeterminable effect

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Answers (2)

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Cloe Duarte · Answer 1

The answer to this question is Little effect

In monopolistic competition, consumers will have no other choice other than buying the product that they need only from one company.

Price variations will only affect the how often the consumers buy the product, but otherwise the sales in the market will remain pretty much the same.

Rock · Answer 2

Little. Monopolistic competition refers to the product differentiation by different producers and sellers, and do not aim to substitute other products. In monopolistic competition, a company uses the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.