Which of the Following Statements Is True

question 72

Multiple Choice

Which of the following statements is true?

• A) An assumption of monopolistic competition is that firms can differentiate their products.
• B) An assumption of perfect competition is that firms can differentiate their products.
• C) Monopolistic competition is not subject to free entry and exit.
• D) An assumption of monopolistic competition is that there are only a few large firms in the industry.

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Definitions:

Rules-based

Refers to systems or processes that are governed by a strict set of predefined rules or laws.

Cash Defined

The total amount of money, in the form of bills or coins, available for use; often considered the most liquid form of assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.

Demand Deposits

Refers to funds held in bank accounts from which money can be withdrawn at any time without any advance notice to the institution.