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:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on the certificate. It is a legal amount per share that represents the minimum stock value.

Market Value

The prevailing cost to purchase or dispose of an asset or service in the market.

No-Par

Refers to stocks issued without a par value; no minimum value is assigned to these shares.

Corporate Charter

A legal document issued by a government, outlining a corporation's rights, privileges, and purpose.