To Analyze Monopolistic Competition in Trade, We Make Several

question 72

Multiple Choice

To analyze monopolistic competition in trade, we make several
Assumptions about the market.Which of the following is NOT an
Assumption of monopolistic competition?

• A)many firms in the industry
• B)easy entry and exit
• C)constant long­run average cost
• D)increasing returns to scale, falling long­run average cost

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Definitions:

Promotional Strategy

A plan to increase awareness, sales, and market share for a product or service through advertising, sales promotions, public relations, and personal selling.

Car Lubricant

A substance used in vehicles to reduce friction, heat, and wear between mechanical components that are in contact.

Sticker

A type of adhesive label or decoration which can be attached to surfaces for informational or decorative purposes.

Nonpersonal Selling

A promotional method using advertising, sales promotions, and other mass-market approaches to sell products, as opposed to direct, face-to-face sales.