What Does Monopolistic Competition Have in Common with Perfect Competition

question 63

Multiple Choice

What does monopolistic competition have in common with perfect competition?

• A) Product differentiation.
• B) A large number of firms and freedom of entry and exit.
• C) A standardised product.
• D) Barriers to exit but no barriers to entry.
• E) The ability to make an economic profit in the long run.

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Definitions:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Sympathetic Branch

Part of the autonomic nervous system that activates the fight or flight response, responsible for increasing heart rate, blood pressure, and energy mobilization.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, including heart rate, digestion, and respiratory rate.

Pupillary Constriction

The narrowing of the pupil of the eye due to the contraction of the iris muscles, typically in response to bright light or focusing on close objects.