What Is the Difference Between Perfect Competition and Monopolistic Competition

question 270

Multiple Choice

What is the difference between perfect competition and monopolistic competition?

• A) Perfect competition has a large number of small firms while monopolistic competition does not.
• B) Perfect competition has barriers to entry while monopolistic competition does not.
• C) Perfect competition has no barriers to entry, while monopolistic competition does.
• D) In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.
• E) In monopolistic competition, firms produce identical goods, while in perfect competition, firms produce slightly different goods.

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Definitions:

Performance

The execution of an action or task measured against pre-established standards such as accuracy, completeness, and speed.

Effort

The use of physical or mental energy to do something; exertion towards accomplishing a task.

Persistence

The continued effort to achieve something despite difficulties, failure, or opposition.

Motivation

Represents the internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject.