Which of the Following Is NOT a Characteristic of Monopolistic

question 37

Multiple Choice

Which of the following is NOT a characteristic of monopolistic competition?

• A) few firms compete
• B) easy entry and exit
• C) small market share
• D) differentiated product
• E) no barriers to entry or exit

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Definitions:

Herfindahl-Hirschman Index

A measure of market concentration used to determine the competitiveness of a market. It sums the squares of the market shares of all firms in the industry.

Industry

A group of companies that produce similar products or services, often characterized by shared markets, competition, and regulations.

Industry Concentration Ratio

A measure used to determine the extent of market control held by the largest companies within an industry, often indicating the level of competition.

Perfect Competition

A market structure where many firms sell identical products, entry and exit to the market are easy, and no single firm can influence the market price.