Answer to Question #237227 in Macroeconomics for Calista

Question

Describe the nature of the goods produced by a monoplistically competitive firm.

Please may I have a detailed solution

Answer 1

Monopolistically competitive firm involves a company producing a product that is slightly different from others. Such firms produce differentiated goods. These products tend to be unique, not made as the products of competitors, and tend to have varying perceived value compared to the rest of the products. Such products usually satisfy customers in varying ways as they tend to be imperfect substitutes considering the remaining products within the market.