Monopolistic Competition Is Defined as a Type of Market Structure

question 51

Multiple Choice

Monopolistic competition is defined as a type of market structure in which

• A) many firms produce the good.
• B) firms produce a homogeneous good.
• C) there are barriers to entry.
• D) firms can make an economic profit in the long run.
• E) firms can easily enter the market but cannot easily exit from it.

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Definitions:

Laws

Regulations and rules established by governments or other authorities to govern behavior and actions in a society.

Competitive Advantage

A situation or factor that gives a business an advantageous or dominant position over its rivals in the industry.

Monopolistic Market Position

A competitive standing where a single company or entity dominates the supply of a particular product or service in a market.

High Profits

Earnings that significantly exceed the costs and investments of a business, reflecting strong financial performance or market advantage.