Which of the Following Is a Feature That Is Shared

question 174

Multiple Choice

Which of the following is a feature that is shared between perfect competition and monopolistic competition, but not between monopolistic competition and monopoly?

• A) rule for maximizing profits
• B) ability to earn profits in the short run
• C) entry in the long run
• D) price exceeds marginal cost

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Definitions:

Differentiated Product

A product that is made distinct from similar products offered by competitors through unique features, quality, branding, or other attributes.

Monopolistic Competitor's

A market structure where many firms sell products that are similar but not identical, each having some control over its price due to product differentiation.

Long-run Demand Curve

A graphical representation that shows the quantities of a product or service consumers are willing to purchase at different prices over a period where all production factors can vary.

Excess Capacity

The situation in which a firm or economy can produce more goods or services than currently being produced due to unused resources, often leading to downward pressure on prices and profitability.