What Does Monopolistic Competition Have in Common with Perfect Competition

question 166

Multiple Choice

What does monopolistic competition have in common with perfect competition?

• A) a large number of firms and freedom of entry and exit
• B) a standardized product
• C) product differentiation
• D) the ability to make an economic profit in the long run
• E) barriers to exit but no barriers to entry

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Definitions:

Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

Domain-general Adaptation

A type of adaptation that occurs across various environments and tasks, indicating a broad level of adjustability and flexibility in behavior and cognition.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Naturalistic Fallacy

The logical error of inferring ethical conclusions directly from natural facts or stating that because something is natural, it is necessarily good or right.