One Difference Between Perfect Competition and Monopolistic Competition Is

question 64

Multiple Choice

One difference between perfect competition and monopolistic competition is

• A)firms in a perfectly competitive market produce similar but slightly different products.
• B)in perfect competition, the product produced has no close substitutes.
• C)monopolistic competition has barriers to entry, whereas perfect competition has none.
• D)firms in monopolistic competition have some degree of market power.
• E)a small number of firms compete in a monopolistically competitive market and a large number of firms compete in a perfectly competitive market.

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Definitions:

Unit Cost

The cost assigned to a single unit of product, calculated by dividing the total cost by the number of units produced.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, and machinery.

Financial Accounting

The field of accounting that provides economic and financial information for investors, creditors, and other external users.

Raw Materials

Basic materials that are used in the production of goods, which have not yet been processed or manufactured.