Which of the Following Is True About Monopolistic Competition but False

question 100

Multiple Choice

Which of the following is true about monopolistic competition but false about perfect competition?

• A)There is a large number of independently acting sellers.
• B)There are no barriers to entry.
• C)Firms can earn an economic profit in the short run.
• D)Firms compete on their product's price as well as its quality and marketing.
• E)Firms cannot earn an economic profit in the long run.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.

Altruism

Prosocial behavior that is done with no expectation of reward and may involve the risk of harm to oneself.

Obedience

Changing one’s behavior at the command of an authority figure.

Judging Line Sizes

A cognitive task that involves comparing the lengths of lines or other geometric figures, often used in psychological experiments.