Which of the Following Features Is Common to Both Perfect

question 59

Multiple Choice

Which of the following features is common to both perfect competition and monopolistic competition?

• A)An individual firm faces a horizontal demand curve.
• B)New firms are free to enter the market in the long-run.
• C)Each firm produces a perfectly homogeneous product.
• D)The firms earn positive economic profit in the long run.

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Definitions:

Globalization

Refers to the process whereby businesses, cultures, and financial markets around the world become more interconnected and interdependent.

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization to achieve its objectives.

Microeconomic Principles

The study of decisions made by individuals and businesses regarding the allocation of resources and prices of goods and services.

Traditional Accounting

The conventional method of recording and reporting financial transactions, focused on historical data and compliance with financial regulations and standards.