Why Is Each Firm in a Monopolistically Competitive Industry Considered

question 9

Multiple Choice

Why is each firm in a monopolistically competitive industry considered as a "mini" monopoly?

• A)There is a large number of sellers in the market
• B)Each firm in monopolistic competition is a price taker
• C)The product of each firm is unique in some way or the other
• D)Each firm faces a perfectly elastic demand curve
• E)There exists a large number of close substitutes of the products

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Definitions:

Jim Crow Laws

Racial segregation laws enacted between the late 19th and mid-20th centuries in the Southern United States, enforcing racial discrimination against African Americans.

Reconstruction

The period (1865-1877) following the American Civil War, during which the Southern states were reorganized and reintegrated into the Union.

Emancipated Slaves

Refers to individuals who were released from slavery, gaining their freedom and rights.

Civil Rights Legislation

Legislation that outlaws discrimination based on race, color, religion, sex, or national origin, aiming to protect the rights of all citizens to political and social freedom and equality.