All of the Following Are Assumptions of Monopolistic Competition EXCEPT

question 117

Multiple Choice

All of the following are assumptions of monopolistic competition EXCEPT

• A) many buyers and sellers.
• B) homogeneous product.
• C) easy entry of new firms in the long run.
• D) profit-maximizing behavior.

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Definitions:

Expected Benefit

The anticipated or forecasted gain or advantage that arises from a specific action or decision, often considered in cost-benefit analysis.

Subjective Probabilities

Individual assessments or beliefs about the likelihood of future events, based on personal judgment rather than objective data.

Microeconomic Analysis

The examination of the economic behavior of individuals, households, and firms, focusing on market mechanisms and the determination of prices and quantities in specific markets.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.