The Major Similarity Between Monopolistic Competition and Perfect Competition Is

question 236

Multiple Choice

The major similarity between monopolistic competition and perfect competition is

• A) the shape of the demand curve.
• B) that both assume many buyers and sellers.
• C) price equals marginal revenue in each.
• D) both assume products are differentiated.

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Definitions:

Permanent Accounts

Accounts that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Expense Account

An account that tracks the costs incurred by a business during its operations.

Accounts Payable

Liabilities owed by a company to its suppliers or creditors for goods and services received that have not yet been paid for.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.