Question

Who sets the price in a monopolistic competition

Answer 1

Answer: producers.

Justification:

A monopolistic market situation is where there is only one producer, which means that there is not competition, and the prices are fixed by that only producer, called the monopolist.

Given tha tthe consumers do not have not alternative, the monopolist has much power ant that let's this supplier to decide the price of the products having the opportunity of making exagerated profits.

Answer 2

Correct answer: producers and consumers

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