Which of the Following Is NOT a Characteristic of Monopolistic

question 36

Multiple Choice

Which of the following is NOT a characteristic of monopolistic competition?

• A) Firms set the price of their product equal to their marginal cost.
• B) There is product differentiation in the market.
• C) There is easy entry and exit.
• D) Firms may earn an economic profit in the short run.

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Definitions:

Expense Account

An account specifically used to track expenditures related to specific activities, projects, or operations.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a specific amount in the future.

Post Reference Notation

An alphanumeric or numeric code used in accounting to indicate a journal entry has been posted to a particular ledger account.

Journal

A chronological record of all financial transactions, used to transfer information to the general ledger in the accounting process.