The Key Feature of Monopolistic Competition That Distinguishes It from Perfect

question 20

Multiple Choice

The key feature of monopolistic competition that distinguishes it from perfect competition is

• A)many sellers.
• B)barriers to entry.
• C)perfectly elastic demand.
• D)product differentiation.
• E)perfectly inelastic demand.

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Definitions:

Legal Barriers

Regulations or policies implemented by governing bodies that limit or control the entry of new firms into certain markets or industries.

Industry

The segment of the economy concerned with production, processing, and preparation of goods and services, often categorized into sectors like manufacturing, services, and agriculture.

Local Monopoly

A situation where a single firm dominates the market within a specific geographic area, limiting competition.

Neighborhood

A geographical area or community within a city or town, characterized by shared features or common identity among its residents.