Which of the Following Is True About Monopolistic Competition but False

question 100

Multiple Choice

Which of the following is true about monopolistic competition but false about perfect competition?

• A)There is a large number of independently acting sellers.
• B)There are no barriers to entry.
• C)Firms can earn an economic profit in the short run.
• D)Firms compete on their product's price as well as its quality and marketing.
• E)Firms cannot earn an economic profit in the long run.

---

Definitions:

Desert

A barren area of landscape where little precipitation occurs and consequently living conditions are hostile for plant and animal life.

Connotation

the implied or associative meaning of a word or phrase, in contrast to its explicit or dictionary definition.

Literal Meaning

The explicit or primary meaning of a word or text, not taking into account any underlying or metaphorical meanings.

Word

The smallest independent element of a language that can convey meaning.