which of the following is not a characteristic of a monopoli

which of the following is not a characteristic of a monopolistically competitive market structure

A. firms must take the market price as giving

B. there are to many firms

C. firms sell products that are similar, but not identical

D. there are no artificial barriers to entry

Solution

Option (A).

Only in a perfectly competitive market structure, a firm is a price taker, resulting in a horizontal straight line as its demand curve. But all other market structures have downward sloping demand curve, because the firm can set its own price.