Which of the Following Is Not a Characteristic of Monopolistic

question 2

Multiple Choice

Which of the following is not a characteristic of monopolistic competition?

• A)a downward-sloping demand curve
• B)differentiated products
• C)excess capacity
• D)All of the above are characteristics of monopolistic competition.

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Definitions:

Treasury Stock

Shares of a company's own stock held by the company itself, often bought back from shareholders and not considered when calculating earnings per share or dividends.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Net Income

The final financial gain of a business once taxes and all expenses are subtracted from the overall income.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.