Which of the Following Characteristics Is Not Common to Monopolistic

question 243

Multiple Choice

Which of the following characteristics is not common to monopolistic competition and perfect competition?

• A) Firms act to maximize profit.
• B) Entry barriers into the industry are low.
• C) The market demand curve is downward sloping.
• D) Firms take market prices as given.

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Definitions:

Perfectly Inelastic Supply

A market condition where the quantity supplied remains constant regardless of changes in price.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other, affecting the terms of the agreement.

Union Workers

Employees who are members of a labor union, which negotiates collective bargaining agreements on their behalf.

Perfectly Inelastic Supply

A market condition where the quantity supplied does not change regardless of price fluctuations.