Which Feature Is Shared by Monopolistic Competition and Perfect Competition

question 41

Multiple Choice

Which feature is shared by monopolistic competition and perfect competition?

• A)few firms in the industry
• B)no barriers to entry or exit in the long run
• C)absolute market power
• D)standardized products

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Definitions:

Service Companies

Businesses that provide intangible products or services to consumers or other businesses rather than manufacturing goods.

Fixed

Costs that do not change with the level of production or sales activity, such as rent, salaries and insurance.

Variable

A quantity that can change or vary, often used in mathematics and statistics to represent an element that can assume different values.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed to variable costs.