What Does Monopolistic Competition Have in Common with Perfect Competition

question 223

Multiple Choice

What does monopolistic competition have in common with perfect competition?

• A)a large number of firms and freedom of entry and exit
• B)a standardized product
• C)product differentiation
• D)the ability to earn an economic profit in the long run
• E)barriers to exit but no barriers to entry

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Definitions:

Unemployment

The situation in which individuals who are capable of working are actively seeking work but are unable to find employment.

Cyclical

Pertaining to fluctuations in economic activity occurring due to the natural business cycle, including expansions, peaks, recessions, and troughs.

Structural

Relating to the underlying or fundamental aspects of something, especially with regard to economic sectors or market changes.

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers are willing and able to supply at different price levels in an economy.