Exam 9: Monopolistic competition and oligopoly

Suppose that a firm raises the price of its product by 10 per cent.Although they have no requirement or agreement to do so,the other firms decide to raise their prices accordingly.This situation is best described as:

Exhibit 9-1 A monopolistic competitive firm -In the long run,the demand curve for the monopolistically competitive firm shown in Exhibit 9-1:

A group of firms that collude to limit competition is called a/an:

In the short run,the monopolistically competitive firm will charge a price equal to marginal cost.