Which of the Following Are Important Differences Between Monopolistically Competitive

question 37

Multiple Choice

Which of the following are important differences between monopolistically competitive markets and monopoly markets?
(i) one market is efficient while the other entrails dead-weight losses
(ii) upward sloping marginal costs is only seen in one of the markets
(iii) long-run profits are possible in one but not the other

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) only
• D)(iii) only

---

Definitions:

Dollar Received

Indicates the actual amount of money received, taking into account all transactions.

Potential Profit Rate

refers to the expected return on investment or the rate at which a particular activity or venture might yield profit under optimal conditions.

Usury Laws

Regulations that impose caps on the interest rates that can be charged on loans, designed to protect consumers from excessive rates.

Price Control

The regulation or limitation of prices by governmental laws or policies, typically to control inflation, stabilize the economy, or ensure affordability of essential goods.