The Model of Perfect Competition and the Model of Monopolistic

question 169

Multiple Choice

The model of perfect competition and the model of monopolistic competition differ in that

• A) perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers.
• B) perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition.
• C) perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits.
• D) perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated.

---

Definitions:

Management

The process of dealing with or controlling things or people, often within an organizational context.

Organizing Team

The process of bringing together a group of individuals to form a coordinated unit, aimed at achieving specific goals and objectives.

Reporting Structure

The arrangement of positions and relationships within an organization that defines who reports to whom.

Work Relationships

The social and professional connections that exist between individuals in a workplace, influencing collaboration, communication, and culture.