Which of the Following Is a Characteristic of Monopolistic Competition

question 221

Multiple Choice

Which of the following is a characteristic of monopolistic competition?

• A)Few firms
• B)Homogeneous products
• C)Easy entry and exit
• D)Strategic dependence

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Definitions:

Marginal Social Benefit

The additional benefit to society resulting from one more unit of a good or service being produced and consumed.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both external and private costs.

Coal Mine Pollution

Environmental contamination resulting from the operation of coal mines, including air and water pollution.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good, including both private costs and any external costs.