In Both Monopolistic Competition and Oligopoly Markets

question 2

Multiple Choice

In both monopolistic competition and oligopoly markets:

• A) there is easy entry and exit.
• B) consumers perceive differences among the products of various competitors.
• C) economic profits may be earned in the long run.
• D) there are many sellers.

---

Definitions:

Handbag

A medium to large bag used for carrying personal items, typically by women, and can vary greatly in style, material, and design.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, with price on the vertical axis and quantity on the horizontal axis.

Value in Product

The perceived benefit or usefulness of a product to the consumer, which includes quality, features, and overall satisfaction.

Price Point

The standard price or price range of a product as determined by its perceived market value and competitive conditions.