What Is a Similarity Between Monopoly and Monopolistic Competition

question 101

Multiple Choice

What is a similarity between monopoly and monopolistic competition

• A)In both market structures, strategic interactions among sellers are important.
• B)In both market structures, there are relatively few sellers.
• C)In both market structures, sellers are price makers rather than price takers.
• D)In both market structures, product differentiation is important.

---

Definitions:

Planning Purposes

The process of preparing for future operations or activities by setting objectives, developing strategies, and outlining tasks and schedules to accomplish the goals.

Costly Component

Refers to an expensive part or element required in the production of a good or in the provision of a service.

Short-term Debt

Debt obligations, typically due within one year, that are used for financing immediate operational needs of a business.

Working Capital Financing

This refers to short-term loans or credit facilities used by a company to finance its daily operations and manage its current assets and liabilities.