One Difference Between Monopolistic Competition and Pure Competition Is That

question 70

Multiple Choice

One difference between monopolistic competition and pure competition is that

• A) products may be homogeneous in monopolistic competition.
• B) there is some control over price in monopolistic competition.
• C) monopolistic competition has significant barriers to entry.
• D) firms differentiate their products in pure competition.

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Definitions:

Belief Perseverance

The psychological phenomena wherein individuals maintain their beliefs despite facing contradicting evidence or facts.

Representativeness Heuristic

The representativeness heuristic is a mental shortcut that involves judging the likelihood of an event by comparing it to an existing prototype in our minds.

Belief Perseverance

The tendency to maintain one's belief even in the face of contradictory evidence.

Overconfidence Phenomenon

A cognitive bias where a person's subjective confidence in their judgments is reliably greater than their objective accuracy.