Monopolistic Competition and Perfect Competition Are Similar in That Each

question 36

Multiple Choice

Monopolistic competition and perfect competition are similar in that each market structure is characterized by

• A) advertising.
• B) production at minimum average cost in the long run.
• C) a horizontal demand curve.
• D) the absence of long-run economic profits.

---

Definitions:

Prevalent

Widespread in a particular area at a certain time; commonly occurring.

Symptoms

Physical or mental features that are regarded as indicating a condition or disease.

Long-Term

Relating to or happening over an extended period, potentially involving prolonged influences or effects on a particular domain such as memory, planning, or investment.

Psychological Effects

Concerns the impacts or changes in behavior, thought, or emotions stemming from a particular event or situation.