Which of the Following Is Not True of Monopolistic Competition

question 24

Multiple Choice

Which of the following is not true of monopolistic competition?

• A)There are a large number of buyers and sellers.
• B)The firms produce differentiated products.
• C)There exists free entry and exit of firms.
• D)Each of the firms faces a horizontal demand curve.
• E)Each of the firms act as a minimonopoly in the market.

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Definitions:

Cost of Goods Sold

The costs directly linked to the manufacturing of products a company sells, which include both materials and labor.

First-In First-Out

An inventory valuation method where the first items produced or acquired are the first to be sold or used.

Temporal Method

A method for currency translation that uses exchange rates based on the time assets and liabilities were acquired or incurred.

Lower of Cost

An accounting principle where the inventory is recorded at the lower of its historical cost or market value.