The Basic Difference Between Pure Competition and Monopolistic Competition Is

question 172

True/False

The basic difference between pure competition and monopolistic competition is in the number of firms in the industry.

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Definitions:

Money Income

The total income in the form of money received by an individual or household before taxes from all sources in a given time period.

Consumer

Consumer is an individual or group that purchases goods or services for personal use, not for manufacture or resale, driving the demand side of the marketplace.

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.

Normal Goods

Goods for which demand increases as the income of the consumer increases, exhibiting a direct relationship between income and demand.