A firm that charges the maximum price without attracting competition from new entrants is
A. Oil firms B. Monopolistic competitive firm C. Monopolistic firm D. Perfectly competitive firm
Correct Answer: C
Explanation
Monopolistic firm is characterizes by an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.