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:

Operating Expenses

Operating expenses encompass the costs associated with running the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

Net Profit Margin

A financial metric that shows the percentage of profit derived from revenue after all expenses are deducted.

Financial Information

Data related to the financial performance and financial position of a company, including income statements, balance sheets, and cash flow statements.

Net Profit Margin

The net profit margin is a financial ratio that shows the percentage of profit a company generates from its total revenue.