One of the Reasons for Low Cross-Price Elasticity in Monopolistic

question 124

Multiple Choice

One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that

• A)Firms in perfect competition differentiate their products.
• B)In monopolistic competition consumers loyal to particular brands view other available products as poor substitutes.
• C)Consumers do not have perfect substitutes in perfect competition.
• D)To save money,firms in monopolistic competition do not advertise.

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Definitions:

Point Bar

A depositional feature made of alluvium that accumulates on the inside bend of streams and rivers, part of the meander.

Velocity

The speed of an object in a particular direction, often measured in meters per second (m/s) or kilometers per hour (km/h).

Formation

The process of being naturally formed or the structure or composition of something that has been formed, often used in geological contexts.

Migration

The movement of people, animals, or particles from one location to another, often driven by environmental factors, social changes, or economic pressures.