In Both Monopolistic Competition and Perfect Competition

question 218

Multiple Choice

In both monopolistic competition and perfect competition,

• A) firms sell identical products.
• B) there is easy entry and exit.
• C) firms are price takers.
• D) firms face horizontal demand curves.
• E) the marginal revenue curve and the demand curve are the same.

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Definitions:

Stimulant

Substances that increase alertness, attention, and energy by accelerating the function of the central nervous system.

Self-Serving Bias

The common human tendency to attribute success to personal factors and failures to external factors for oneself.

Success Responsibility

The notion that individuals are accountable for their achievements and should take credit for their successes.

Medical Model

The concept that diseases, in this case psychological disorders, have physical causes that can be diagnosed, treated, and, in most cases, cured, often through treatment in a hospital.