A Major Difference Between Monopolistic Competition and Perfect Competition Is

question 181

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 standardized in monopolistic competition unlike in perfect competition.
• D)the barriers to entry in the two markets.

---

Definitions:

ACP

Average Collection Period, indicating the average number of days it takes a company to collect payments from its credit sales.

Du Pont Analysis

A framework for analyzing a company's return on equity (ROE) by breaking it down into its constituent components to assess operational efficiency.

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using shareholders’ funds to generate profit.