Which of the Following Conditions Distinguishes Monopolistic Competition from Perfect

question 218

Multiple Choice

Which of the following conditions distinguishes monopolistic competition from perfect competition?

• A)number of sellers 
• B)freedom of entry and exit 
• C)perfect information 
• D)homogeneity of the product

---

Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price takers rather than makers.

Worthless Coin

A coin that has lost its value as currency, often due to hyperinflation or being phased out of circulation.

Inefficient Exchange

Occurs when there is a missed opportunity in the allocation of goods or services that could make at least one individual better off without making anyone else worse off.

Persian King

A sovereign ruler of the ancient Persian Empire, known for their significant influence over one of the largest empires in history.