Which of the Following Is a Characteristic of a Monopolistically

question 72

Multiple Choice

Which of the following is a characteristic of a monopolistically competitive market? I. Firms sell differentiated products.
II) Each firm is earning a zero economic profit in the long run.
III) Potential entrants face artificial barriers to entry.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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Definitions:

Service Quality

The degree to which a delivered service meets or exceeds the expectations of customers, often a key competitive advantage in business.

Tangibility

Refers to the physical existence of products or items that can be seen, touched, and felt.

Service Failures

Instances when customer expectations are not met by service delivery, often leading to dissatisfaction.

Controllable Factor

An element or variable in a business or process that can be modified or adjusted according to the needs of the manager or operator.