Which Set of Characteristics Below Best Describes the Basic Features

question 49

Multiple Choice

Which set of characteristics below best describes the basic features of monopolistic competition?

• A) easy entry, many firms, and standardized products
• B) barriers to entry, few firms, and differentiated products
• C) easy entry, many firms, and differentiated products
• D) easy entry, few firms, and standardized products

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market make just enough profit to cover their costs.

Marginal Cost

The increase or decrease in the total cost incurred from producing one additional unit of a good or service.

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.