A Major Difference Between Monopolistic Competition and Perfect Competition Is

question 119

Multiple Choice

A major difference between monopolistic competition and perfect competition is

• A) the number of sellers in the markets.
• B) the degree by which the market demand curves slope downwards.
• C) that products are not standardised in monopolistic competition, unlike in perfect competition.
• D) the barriers to entry in the two markets.

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Definitions:

Principal

The primary party involved in a financial transaction or agreement, often referring to the main amount of money borrowed or invested.

Legal Action

A formal proceeding in a court, which involves enforcing or defending a legal right.

Authorised

Officially granted permission or power to do something within a particular scope or sphere.

Contract

A contract that is legally enforceable and entered into by two or more parties.