Which Set of Characteristics Best Identifies a Monopolistically Competitive Market

question 68

Multiple Choice

Which set of characteristics best identifies a monopolistically competitive market?

• A) many firms, homogeneous product, significant barriers to entry, significant nonprice competition, and considerable power over price
• B) few firms, differentiated product, no barriers to entry, the absence of nonprice competition, and considerable advertising
• C) one firm producing a product with no close substitutes, significant barriers to entry, and considerable power over price
• D) many firms, differentiated product, few barriers to entry, and nonprice competition
• E) few firms, differentiated product, significant barriers to entry, and significant amounts of nonprice competition

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Definitions:

Molecules

The smallest chemical units of a substance that retain its chemical properties, consisting of one or more atoms bonded together.

Cilia

Microscopic, hair-like structures that extend from the surface of many animal cells, involved in movement and sensory functions.

Flagella

Long, slender projections from a cell that are primarily used for locomotion, allowing the cell to move through liquid environments.

Messenger RNA

A type of RNA that carries genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.