One Difference Between Perfect Competition and Monopolistic Competition Is

question 64

Multiple Choice

One difference between perfect competition and monopolistic competition is

• A)firms in a perfectly competitive market produce similar but slightly different products.
• B)in perfect competition, the product produced has no close substitutes.
• C)monopolistic competition has barriers to entry, whereas perfect competition has none.
• D)firms in monopolistic competition have some degree of market power.
• E)a small number of firms compete in a monopolistically competitive market and a large number of firms compete in a perfectly competitive market.

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Definitions:

Direct Labor Dollars

The total cost of workforce labor that is directly involved in the manufacturing or production of goods and services.

Finished Goods Inventory

The total value of all completed products that are ready for sale at the end of an accounting period, part of a company's current assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Material

Substantial or significant; in accounting, referring to an amount that would influence the decision of an informed user.