Which of the Following Is a Distinction Between Perfectly Competitive

question 10

Multiple Choice

Which of the following is a distinction between perfectly competitive and monopolistic competition?

• A) Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers.
• B) Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product.
• C) Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve.
• D) Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.

---

Definitions:

Replacement Reproduction

This refers to a reproduction strategy where the offspring number is equal to the parent number, aiming to sustain the population size.

Zero Population Growth

A demographic balance where the number of people in a specified population neither grows nor declines, due to a balance between birth rates and death rates.

Praying Mantis

A carnivorous insect known for its distinctive posture that resembles praying hands, belongs to the family Mantidae.

Survivorship Curve

A graphical representation of the number of individuals of a species or population that survive at different stages throughout their lifespan.