A Significant Difference Between a Monopolistically Competitive Firm and a Purely

question 15

Multiple Choice

A significant difference between a monopolistically competitive firm and a purely competitive firm is that the

• A) former has fewer barriers to entry into the industry.
• B) latter recognizes that price must be reduced to sell more output.
• C) latter’s demand curve is perfectly elastic.
• D) latter differentiates its product.

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Definitions:

K+

Potassium ion, an essential electrolyte involved in various body functions including nerve signal transmission and muscle contraction.

Hyperpolarize

A change in a cell's membrane potential that makes it more negative, moving it further away from initiating an action potential.

Hyperpolarization

An increase in a cell's membrane potential, making the interior of the cell more negative and less likely to fire an action potential.

Plasma Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out.