Which of the Following Conditions Distinguishes Monopolistic Competition from Perfect

question 218

Multiple Choice

Which of the following conditions distinguishes monopolistic competition from perfect competition?

• A)number of sellers 
• B)freedom of entry and exit 
• C)perfect information 
• D)homogeneity of the product

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Definitions:

Net Present Value

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The value today of an anticipated sum of money or sequence of cash flows, when calculated with a certain return rate.

Future Cash Inflows

Future cash inflows are the expected receipts of cash that a business anticipates receiving from operations, investments, or financing activities in the future.

Manufacturing Flexibility

The ability of a production system to quickly adapt to changes in the types and quantities of products demanded.