One Thing That Makes Monopolistic Competition Similar to Perfect Competition

question 100

Multiple Choice

One thing that makes monopolistic competition similar to perfect competition is that, in the:

• A) long run, both are guaranteed positive economic profit.
• B) short run, both are guaranteed positive economic profit.
• C) short run, neither can earn positive economic profit.
• D) long run, both will earn zero economic profit.
• E) long run, both could earn positive economic profit, but monopolistic competitors will earn more than perfect competitors will.

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Definitions:

Basic Psychological Needs

Fundamental human motivations that include the need for competence, autonomy, and relatedness, which are essential for psychological development and well-being.

Friendly Relationships

Bonds between individuals characterized by mutual affection, support, and a positive regard, fostering a pleasant social environment.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Autonomy Support

The encouragement of self-initiative and independence in individuals by offering them choices and understanding their perspectives.