Monopolistic Competition Is Characterized By

question 109

Multiple Choice

Monopolistic competition is characterized by:

• A)free entry and exit in the long run.
• B)each firm producing a standardized product.
• C)few producers.
• D)barriers to entry.

---

Definitions:

Public Goods

Goods or services that are non-excludable and non-rivalrous, meaning they are available to all and not diminished by use.

Private Consumption

Spending by households and individuals on goods and services for personal use, excluding purchases by businesses or governments.

Pareto Optimal

A situation in which it is impossible to make any one individual better off without making at least one individual worse off.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.