Consumers' differing tastes are one reason why monopolistic:____.
a) firms encounter large barriers to entry.
b) competitors earn a positive economic profit in the long run.
c) competitors set price at MC.
d) competitors are similar to monopolists.

Monopolistic competition refers to a condition of the market in which it connects with various irms that are closely linked to each other but sell distinct products.

Also, there is free entry and exit in this market

In case when consumer taste and preferences are different so the monopolistic competitors are the same as the monopolist

hence, the correct option is d.

Consumers' differing tastes are one reason why monopolistic:____. a) firms encounter large barriers to entry. b) competitors earn a positive economic profit in the long run. c) competitors set price at MC. d) competitors are similar to monopolists.

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Consumers' differing tastes are one reason why monopolistic:____.
a) firms encounter large barriers to entry.
b) competitors earn a positive economic profit in the long run.
c) competitors set price at MC.
d) competitors are similar to monopolists.