The Feature That Distinguishes Monopolistic Competition from Perfect Competition Is

question 58

Multiple Choice

The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are

• A) large relative to the market.
• B) price takers.
• C) able to block the entry of other firms.
• D) able to differentiate their product.

---

Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer experiences from consuming one more unit of a good or service.

Consumer Surplus

The incongruity between the maximum amount consumers are willing and able to pay for a good or service and the actual amount they end up paying.

Total Utility

The overall satisfaction or pleasure a consumer derives from consuming a certain amount or combination of goods and services.

Marginal Utility

The supplementary enjoyment or advantage gained by consuming one more unit of a good or service.