The correct answer is: D. Free admission
In monopolistic competition, firms have a small amount of market power, which means that they can raise their prices above the competitive level without losing all of their customers. However, this market power is limited by the fact that there are other firms in the market that offer similar products. As a result, firms in monopolistic competition will only be able to earn a normal profit in the long run.
Commodity discrimination is a strategy that firms use to charge different prices to different customers for the same product. This can be done based on factors such as location, time of purchase, or quantity purchased. Value leadership is a strategy that firms use to set their prices at a level that is higher than the prices of their competitors. This is done in order to create a perception of quality and value for the firm’s products. Market power is the ability of a firm to raise its prices above the competitive level without losing all of its customers. Free admission is a policy that allows consumers to access a good or service without having to pay a fee.
In monopolistic competition, firms have a small amount of market power, which means that they can raise their prices above the competitive level without losing all of their customers. However, this market power is limited by the fact that there are other firms in the market that offer similar products. As a result, firms in monopolistic competition will only be able to earn a normal profit in the long run.
Free admission is a policy that allows consumers to access a good or service without having to pay a fee. This can be done for a variety of reasons, such as to promote public health or to encourage people to use a particular service. In the context of monopolistic competition, free admission would mean that firms would not be able to charge any price for their products. This would eliminate the firm’s market power and would force them to compete on price alone. As a result, firms in monopolistic competition would only be able to earn a normal profit in the long run.