When Comparing Perfect Competition and Monopolistic Competition, We Find That

question 145

Multiple Choice

When comparing perfect competition and monopolistic competition, we find that

• A) firms in monopolistic competition are price takers just as is the case for firms in perfect competition.
• B) firms in monopolistic competition face barriers to entry, unlike firms in perfect competition.
• C) advertising plays a large role in monopolistic competition, unlike in perfect competition.
• D) firms in monopolistic competition produce identical products just as do firms in perfect competition.

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Definitions:

Double Disadvantage

A situation where an individual or group faces multiple layers of marginalization, discrimination, or barriers, exacerbating their overall disadvantage in society.

Failure

The lack of success in achieving or accomplishing a desired goal or objective.

Diversity

The presence of a wide range of variation in qualities, attributes, or characteristics among people, organisms, or objects.

Prosocial Behavior

Positive, helpful, and intended to promote social acceptance and friendship actions.