If We Are to Discuss Why the Term "Monopolistic Competition

question 8

Multiple Choice

If we are to discuss why the term "monopolistic competition" is used,the best description would be that the industry is "monopolistic" because it:

• A) has high barriers to entry but is "competitive" because it has many firms.
• B) has low barriers to entry but is "competitive" because it has few firms.
• C) has product differentiation but is "competitive" because it has many firms.
• D) has a monopoly but is "competitive" because there are low barriers to entry, meaning it has potential rivals.
• E) holds patents but is "competitive" because other firms might invent similar patentable products.

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Definitions:

Exchange

An activity that occurs when a buyer and seller trade things of value so that each is better off as a result.

Marketing Concept Era

The Marketing Concept Era refers to the period in which businesses recognized the importance of understanding customer needs and wants to guide the production, promotion, and selling of their products and services.

Production Orientation

A business approach that prioritizes the efficiency of production processes and product features over potential market desires or consumer needs.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events and turning points in history.