Which of the Following Is NOT a Characteristic of Monopolistic

question 55

Multiple Choice

Which of the following is NOT a characteristic of monopolistic competition?

• A) There is easy entry and exit.
• B) Firms may earn an economic profit in the short run.
• C) There is product differentiation in the market.
• D) Firms set the price of their product equal to their marginal cost.

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Definitions:

Annual Investment

The amount of money invested in a particular asset or project on a yearly basis.

Time Value

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.

Payback Period

A way to determine the duration required for an investment to reach a point where returns equal the costs, providing a simple tool for evaluating project viability.

Net Cash Flow

The difference between a company’s cash inflows and outflows over a specific period, indicating its financial health.