Which of the Following Are Characteristic of a Monopolistically Competitive

question 60

Multiple Choice

Which of the following are characteristic of a monopolistically competitive market?

• A) Economic profits are often positive in the long run.
• B) All firms are price takers.
• C) There are many small firms in the industry.
• D) Each firm faces a horizontal demand curve.
• E) Firms engage in strategic behaviour.

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Definitions:

Industrial Revolution

A period of major industrialization from the late 18th to mid-19th century that transformed mainly agrarian, rural societies in Europe and America into industrialized, urban ones.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Nobles of the Robe

French nobility who earned their titles through holding certain judicial or administrative offices, as opposed to "Nobles of the Sword" who inherited their titles through lineage.

Administrative Offices

Departments or units within an organization responsible for maintaining the daily operations and providing administrative support to facilitate the workflow.