One Difference Between Perfect Competition and Monopolistic Competition Is That

question 120

Multiple Choice

One difference between perfect competition and monopolistic competition is that _____

• A)firms in perfect competition cannot earn a long-run economic profit, whereas firms in monopolistic competition can earn a long-run economic profit.
• B)firms in perfect competition take full advantage of economies of scale in long-run equilibrium, whereas firms in monopolistic competition do not take advantage of economies of scale in long-run equilibrium.
• C)firms in perfect competition can easily exit the market, whereas firms in monopolistic competition find it difficult to exit the market.
• D)firms in perfect competition face a downward-sloping demand curve, whereas firms in monopolistic competition face a horizontal demand curve.
• E)there are many firms in a perfectly competitive market, whereas there are a few firms in a monopolistically competitive market.

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Definitions:

Water Pollutants

Substances or conditions that contaminate water bodies, adversely affecting water quality, aquatic life, and safe consumption by humans and wildlife.

Chemical Analysis

The study and use of methods and techniques to identify and quantify the chemical components of a substance or sample.

Cultural Eutrophication

The process by which a body of water becomes overly enriched with minerals and nutrients, often due to runoff from the land, leading to excessive growth of algae and decline in water quality.

Algae Blooms

Rapid increase or accumulation in the population of algae in water systems, often resulting in discoloration of waters and causing negative ecological effects.