Which of the Following Characteristics Does Perfect Competition Share with Monopolistic

question 226

Multiple Choice

Which of the following characteristics does perfect competition share with monopolistic competition?

• A)price-taking firms
• B)zero long-run economic profit
• C)homogeneous product
• D)some barriers to entry
• E)economies of scale in production

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Definitions:

Conglomerate Merger

A merger between firms that operate in entirely different industries, often aimed at diversification and risk reduction.

Trust

A legal arrangement where one party holds assets on behalf of another, or confidence in the reliability and integrity of a person or entity.

Interstate Commerce Commission

A regulatory agency in the United States established to oversee railroad operations and later expanded to oversee other modes of transportation.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere to encourage more competition within the industry.