Which of the Following Features Distinguishes Monopolistically Competitive Firms from Monopolies

question 66

Multiple Choice

Which of the following features distinguishes monopolistically competitive firms from monopolies and oligopolies?

• A) Monopolistically competitive firms cannot influence market price by virtue of their size alone while monopolies and oligopolies can.
• B) Monopolistically competitive firms are not constrained by market demand while monopolies and oligopolies are.
• C) Monopolistically competitive firms are price takers while monopolies and oligopolies are not.
• D) Monopolistically competitive firms sell a homogeneous product while monopolies and oligopolies sell a differentiated product.

---

Definitions:

1,3-Pentadiene

An organic compound with a chain of five carbon atoms, containing two double bonds located at positions 1 and 3.

Addition Products

Compounds formed by the direct addition of two or more substances, typical in reactions of alkenes and alkynes with reagents.

Carbocation Intermediate

A positively charged intermediate species featuring a carbon atom with three bonds and a vacant p-orbital, playing a critical role in many organic reactions.

Solvolysis

A chemical process in which the solvation medium, typically a solvent, participates in the cleavage of a bond within a solute, leading to the formation of new substances.