One Difference Between Perfect Competition and Monopolistic Competition Is That

question 123

Multiple Choice

One difference between perfect competition and monopolistic competition is that

• A)in perfect competition, firms cannot earn a long-run economic profit
• B)in perfect competition, firms take full advantage of economies of scale in long-run equilibrium; in monopolistic competition, firms do not
• C)only under perfect competition is there ease of entry and exit
• D)in monopolistic competition, the firm's demand curve is horizontal; in perfect competition, the firm's demand curve slopes downward
• E)in perfect competition, there are many firms; under monopolistic competition, there are few firms

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Definitions:

Reputation

The overall quality or character as seen or judged by people in general, often influenced by their perceptions of an individual's or organization's actions.

Perceptual Identity

The way individuals see themselves and how this self-perception affects their interactions and communication with others.

Demonstrated Behavior

Observable actions or reactions of an individual or group that are exhibited in response to a situation or stimulus.

Relationship Changes

Alterations in the dynamics or nature of interactions between individuals or groups.