Which of the Following Would NOT Cause the Costs in a Monopolistically

question 153

Multiple Choice

Which of the following would NOT cause the costs in a monopolistically competitive industry to be higher than those in a perfectly competitive industry?

• A)A large number of competitors
• B)Advertising expenditures
• C)Marketing costs necessary to differentiate a product
• D)The ability to control the price of the product so costs can be allowed to rise

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Definitions:

Expenses

Costs incurred in the running of a business or the completing of an activity.

Licensing

An agreement where a company allows another entity to produce its goods in exchange for a designated fee.

International Market

A market that encompasses the trading of goods, services, technology, capital, and/or knowledge across national borders.

Trademarks

Legally registered symbols, names, or expressions used exclusively by a company to represent their products or services.