Which of the Following Is a Characteristic of a Monopolistically

question 18

Multiple Choice

Which of the following is a characteristic of a monopolistically competitive firm as opposed to a monopoly firm?

• A)Monopolistically competitive firms make positive economic profit in the long-run unlike monopoly firms.
• B)Monopolistically competitive firms face downward sloping demand curves unlike monopoly firms.
• C)Monopolistically competitive firms do not face entry barriers unlike monopoly firms.
• D)Monopolistically competitive firms produce goods that have no substitutes unlike monopoly firms.
• E)Monopolistically competitive firms produce at the level where marginal revenue equals marginal cost unlike monopoly firms.

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Definitions:

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from several sellers, implying a more deliberate decision-making and selection process.

Unsought Product

A type of product that consumers typically do not think about buying or do not know exists until they see it or need it.

Coring Machine

Equipment used to remove a cylinder of material, such as soil or rock, for analysis or construction purposes.

Specialty Product

Goods or services that have unique characteristics and are bought less frequently with a higher level of customer loyalty and involvement.