The Use of the Word "Monopoly" in the Name of the Market

question 20

Multiple Choice

The use of the word "monopoly" in the name of the market structure called "monopolistic competition" refers to the fact that

• A) monopolistically competitive firms charge prices equal to their marginal costs, just like monopolists.
• B) a monopolistically competitive firm faces a downward sloping demand curve for its differentiated product, and so does a monopolist.
• C) monopolistically competitive markets have free entry and exit, just like a monopolistic market.
• D) monopolistically competitive firms produce beyond their efficient scale, and so do monopolists.

---

Definitions:

Smartphone Users

Individuals who use smartphones, which are mobile phones with advanced features like internet connectivity and apps.

Effective Messages

Communications that achieve their intended purpose, successfully conveying the sender's intended meaning to the recipient.

Mobile Devices

Portable computing devices such as smartphones and tablets that have wireless internet capability.

Mobile Devices

Portable electronic gadgets with computing capabilities, such as smartphones and tablets, used for communication, entertainment, and accessing information.