Which of the Following Is an Assumption of Monopolistic Competition

question 145

Multiple Choice

Which of the following is an assumption of monopolistic competition?

• A) Firms produce identical (homogeneous) outputs.
• B) There are many firms in the industry.
• C) Production occurs with decreasing returns to scale technology.
• D) Each firm faces a perfectly elastic demand curve.

---

Definitions:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Infant

A very young child, especially one newly or recently born, typically referring to a child in the first year of life.

Toddler

A young child, typically aged between one and three years old, who is in the early stages of walking and developing speech.

Insecurely Attached Infants

Infants who exhibit anxiety or avoidant behavior when separated from their caregivers, indicating a lack of secure attachment.