A Major Difference Between Monopolistic Competition and Perfect Competition Is

question 277

Multiple Choice

A major difference between monopolistic competition and perfect competition is

• A) the number of sellers in the market.
• B) the degree by which the market demand curve slopes 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:

Account

A record that summarizes all transactions related to a particular item or entity, used in financial accounting to track financial changes.

Dividends

Payments made by a corporation to its shareholders out of its profits.

Expenses

Costs incurred in the operation of a business to generate revenue.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet.