Which of the Following Is Not a Requirement for the Existence

question 95

Multiple Choice

Which of the following is not a requirement for the existence of monopolistic competition in a market?

• A)numerous small sellers 
• B)full information about the market among buyers and sellers 
• C)product homogeneity 
• D)freedom of entry into the market

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, freedom of entry and exit, and perfect information about prices and products.

P = MC

The condition where the price of a good equals its marginal cost, representing an equilibrium in perfect competition markets.

Technological Progress

The advancement in technology which increases production efficiency and leads to economic growth.

Demand for Labor

The total amount of labor that employers want to hire at various wage rates.