Q:

Who sets the price in a monopolistic competition?

Accepted Solution

A:
Answer: Firm sets the price in a monopolistic competition.Step-by-step explanation:Monopolistic competition is the market structure in which there are large number of buyers and sellers and it produce differentiated products and there is free entry and exit of firms.Since they sell differentiated products so, every firm has to set the price of their own products.Hence, Firm sets the price in a monopolistic competition.