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:

Obligation

A duty or commitment to pay money or perform some action.

Equivalent

Equal in value, amount, function, meaning, or status; often used in mathematics to describe expressions or amounts that are the same when compared or evaluated.

Compounded Quarterly

Refers specifically to the computation of interest at four intervals in a year, on the initial investment alongside the interest from preceding periods.

Repaid

The act of paying back money previously borrowed from a lender.