A Monopolistically Competitive Industry Combines Elements of Both Competition and Monopoly

question 63

Multiple Choice

A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from

• A) the likelihood of collusion.
• B) high entry barriers.
• C) product differentiation.
• D) mutual interdependence in decision making.

---

Definitions:

Tinnitus

A ringing or tinkling sound in the ear that is heard only by the person affected.

Ringing

The sound or sensation of tones or buzzing heard in the ears, not caused by external sound.

Ears

Organs of hearing that are also essential for maintaining equilibrium.

Blurred Vision

A lack of sharpness and clarity in vision, making objects appear out of focus.