The Major Difference Between Monopolistic Competition and Monopoly Is

question 207

Multiple Choice

The major difference between monopolistic competition and monopoly is

• A) monopoly is a price setter, and a firm in monopolistic competition is a price taker.
• B) only a monopoly can make an economic profit in the long run.
• C) only a firm in monopolistic competition can make an economic profit in the short run.
• D) how the quantity of output is determined.
• E) only firms in monopolistic competition are protected by barriers to entry.

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Definitions:

Monopolist

An individual or entity that holds exclusive control over the supply of a particular good or service, often characterized by the absence of competition.

Produced Output

The total quantity of goods or services created by a production process.

Industry

The collective group of businesses and activities involved in the manufacture, production, or supply of goods and services.

Pure Monopolist

A market structure in which a single producer or company has exclusive control over the supply of a particular good or service, without any close substitutes.