Which of the Following Best Explains Why Firms in Monopolistic

question 72

Multiple Choice

Which of the following best explains why firms in monopolistic competition face a downward-sloping demand curve while perfectly competitive firms do not?

• A)Monopolistically competitive industries have only a few firms.
• B)Monopolistically competitive firms face barriers to entry.
• C)Only industries with free entry and exit have firms that face horizontal demand curves.
• D)Firms in monopolistic competition are price takers.
• E)Firms in monopolistic competition sell differentiated goods.

---

Definitions:

Units Arrive

Pertains to the process or moment when manufactured goods or inventory items reach a designated location, such as a warehouse.

M/M/1 Assumptions

A set of conditions that underlie the M/M/1 queue model, including that arrivals occur according to a Poisson process, service times have an exponential distribution, there is a single server, and the queue has infinite capacity.

Average Number

A statistical measure representing the central or typical value in a set of numbers, often calculated as the sum of all numbers divided by the count of numbers.

μ

The symbol commonly used to represent the mean or average in statistics and mathematics.