A Major Distinction Between a Monopolistically Competitive Firm and an Oligopolistic

question 62

Multiple Choice

A major distinction between a monopolistically competitive firm and an oligopolistic firm is that

• A) one is a price taker and the other is a price maker.
• B) a recognized interdependence exists between firms in one industry but not in the other.
• C) one always produces differentiated products and the other always produces a homogeneous product.
• D) one necessarily faces a downward-sloping demand curve and the other a horizontal demand curve.

---

Definitions:

Precontemplation

A stage in the Transtheoretical Model of Behavior Change where the individual is not yet considering change or unaware of the need to change.

Action

The process of doing something in order to achieve a specific goal or result.

Stages of Change

A concept in psychology that maps out the phases individuals go through as they modify behavior, ranging from precontemplation to maintenance.

Transtheoretical Model

A theory of behavior change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual.