Which of the Following Is NOT Similar Between Monopolistic Competition

question 306

Multiple Choice

Which of the following is NOT similar between monopolistic competition and perfect competition?

• A)Many firms compete in the market.
• B)It's easy to enter the market.
• C)The firms have downward sloping demand curves.
• D)The firms might incur economic losses in the short run.
• E)In the long run,the firms earn zero economic profit.

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Definitions:

Open System

A system that interacts with its environment by exchanging energy, materials, or information.

Subsystems

Smaller, component systems within a larger system, each having its own function but contributing to the operation and success of the whole.

Free-Agent Economy

An economy in which people change jobs more often, and many work on independent contracts with a shifting mix of employers.

Jobs

Positions or roles within organizations or societies that involve performing specific duties and tasks in exchange for compensation, such as salary or wages.