Which of the Following Characteristics Provide a Monopolistically Competitive Firm

question 17

Multiple Choice

Which of the following characteristics provide a monopolistically competitive firm some monopoly power?

• A) significant barriers to entry into the industry
• B) product differentiation
• C) a low concentration ratio in the industry
• D) price discrimination

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision.

Self-Control Problem

The difficulty individuals face in resisting short-term temptations to meet long-term goals.

Behavioral Economists

Experts who analyze the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices of persons and entities.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.