Which of the Following Is Not a Characteristic of Monopolistic

question 1

Multiple Choice

Which of the following is not a characteristic of monopolistic competition?

• A)The market is fragmented.
• B)There is free entry and exit.
• C)In the long-run equilibrium, firms earn positive profits.
• D)Firms produce horizontally differentiated products.

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Definitions:

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other, affecting the terms of the agreement.

Union Workers

Employees who are members of a labor union, which negotiates collective bargaining agreements on their behalf.

Perfectly Inelastic Supply

A market condition where the quantity supplied does not change regardless of price fluctuations.

Bargaining Power

The relative capacity of one of the parties in a negotiation or deal-making scenario to influence the terms of an agreement.