The Greater the Product Differentiation Between Monopolistically Competitive Firms

question 12

Multiple Choice

The greater the product differentiation between monopolistically competitive firms

• A) the lower the barriers to entry.
• B) the greater the price elasticity of demand.
• C) the higher the average variable costs.
• D) the lower the price elasticity of demand.

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Definitions:

Performance

The act of carrying out or accomplishing an action, task, or function.

Punishment Consistent

The reliable and systematic application of a negative consequence following an undesired behavior in order to decrease its occurrence.

More Severe

Describing a condition or situation that is of greater intensity, seriousness, or urgency than previously noted or compared to others.

Observational Learning

A form of learning that occurs through observing the behavior of others and the consequences of that behavior.