Which of the Following Assumptions Is Part of the Model

question 9

Multiple Choice

Which of the following assumptions is part of the model of monopolistic competition?

• A) Firms make identical or homogeneous products.
• B) There is no mutual interdependence among firms.
• C) There are significant barriers to entry into the market.
• D) Firms have no control over their products' prices.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor costs.

Perpetual Inventory System

An inventory management system where updates to inventory records are made immediately following each transaction, giving a continuous, real-time account of stock levels.

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined by averaging the cost of all similar items available.

Periodic System

A method of inventory tracking where updates are made on a periodic basis rather than continuously, typically at the end of an accounting period.