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Who sets the price in a monopolistic competition?
producers and consumers
consumers only
government
producers only
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GPT-5 mini
AI
Producers only.
In monopolistic competition each firm sells a differentiated product and thus has some price-setting power — firms choose their own prices given the demand they face. Consumers influence demand but do not directly set prices.
In monopolistic competition each firm sells a differentiated product and thus has some price-setting power — firms choose their own prices given the demand they face. Consumers influence demand but do not directly set prices.
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