A Key Characteristic of Monopolistic Competition Is Product Differentiation

question 173

True/False

A key characteristic of monopolistic competition is product differentiation.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Comparative Advantage

The ability of a country, individual, or firm to produce a particular good or service at a lower opportunity cost than others.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Opportunities Forgone

The benefits, profit, or value of something that must be given up to acquire or achieve something else.