All of the Following Characteristics Are Common to Both Monopolistic

question 233

Multiple Choice

All of the following characteristics are common to both monopolistic competition and perfect competition except

• A)firms act to maximize profit.
• B)entry barriers into the industries are low.
• C)the market demand curves are downward-sloping.
• D)firms take market prices as given.

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Definitions:

Diving Board

A flexible board secured at one end and projecting over water, used for diving or jumping into a pool.

Pluralistic Ignorance

A psychological phenomenon where the majority of group members privately reject a norm, but assume incorrectly that most others accept it, leading to a disconnect between beliefs and behaviors.

Diffusion of Responsibility

A socio-psychological phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility in the presence of others.

Aggression

Any behavior intended to harm another person who is motivated to avoid the harm