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:

Option C – Monopolistic firm

Explanation

Monopolistic firm is characterized 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 anyone firm do not directly affect those of its competitors.