All of the Following Are Characteristics of Monopolistic Competition EXCEPT

question 161

Multiple Choice

All of the following are characteristics of monopolistic competition EXCEPT

• A) a few firms dominate the industry.
• B) product differentiation.
• C) many firms in the industry.
• D) advertising.

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Definitions:

Equitable

Equitable refers to something characterized by fairness, impartiality, and justice, particularly in the way people are treated or decisions are made.

Market Failure

When the free market's distribution of goods and services is inefficient, it typically results in a reduction of societal welfare.

Inefficient Allocation

A situation where resources are not used in the best possible way, often leading to waste or unmet needs.

Negative Externality

An undesirable outcome of an economic activity that affects third parties who did not choose to incur that cost or benefit.