Which of the Following Is a Characteristic of Monopolistic Competition

question 70

Multiple Choice

Which of the following is a characteristic of monopolistic competition?

• A) A small number of sellers.
• B) Supernormal profits in the long run.
• C) Free entry and exit of firms.
• D) A small number of buyers.

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Definitions:

Coffee Farm

A farm where coffee plants are cultivated for their beans.

Market Price

The present cost at which an item or service may be purchased or sold in a market setting.

Profit Maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Deadweight Loss

A reduction in economic productivity happens when a good or service fails to reach or cannot attain its equilibrium state.