The Key Difference(s)between Perfect Competition and Monopolistic Competition Is

question 10

Multiple Choice

The key difference(s) between perfect competition and monopolistic competition is:

• A)that a monopolistically competitive firm is a price taker, whereas a perfectly competitive firm is a price maker.
• B)that a monopolistically competitive firm is a price maker, the same as a perfectly competitive firm is a price maker.
• C)that a monopolistically competitive firm can raise its price and still retain some customers.
• D)that if a monopolistically competitive firm raises its price it will lose all customers..

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Definitions:

Indirect Fixed Cost

Expenses that cannot be directly linked to the production of goods or services and do not vary with the level of production output.

Profit Center

A segment or unit within an organization that is responsible for generating its own revenue and tracking its own costs.

Company Personnel Department

The segment of a business organization that handles hiring, training, employee relations, and benefits administration.

Cost Center

A unit within an organization that does not directly add to profit but still incurs costs, such as a department or project, which needs to be monitored for internal efficiency.