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.

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Definitions:

Shock Approach

An approach that uses a question designed to make the prospect think seriously about a subject related to the salesperson’s product.

Thin-Slice Judgments

Quick assessments made based on limited information, often used in forming first impressions.

First Impressions

The initial perception or judgment formed about someone or something, typically occurring within seconds of interaction or observation.

Rapport Topic

A subject or matter used as a basis to establish a positive and understanding relationship with someone, especially in sales or professional settings.