Which Is NOT a Characteristic of Monopolistic Competition

question 234

Multiple Choice

Which is NOT a characteristic of monopolistic competition?

• A) small share of market to each firm
• B) lack of collusion among firms
• C) few firms in the industry
• D) independence of each firm's decisions

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Definitions:

Market Price

The market price at which you can currently buy or sell an asset or service.

Cash Deal

A transaction where the payment for a good, service, or acquisition is made entirely with cash instead of financing or stock exchanges.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of an asset in the open market.

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash within a year.