Which of the Following Is NOT a Characteristic of Monopolistic

question 17

Multiple Choice

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

• A) Firms have some control over their markets.
• B) Firms produce an identical product.
• C) Firms retain some ability to control prices.
• D) The average cost for firms declines as they produce more output.

---

Definitions:

Utility Function

A formula that quantifies the happiness or satisfaction a consumer gains from consuming different combinations of goods and services.

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources or goods between two parties and to illustrate potential gains from trade.

Pareto Efficient

A Pareto efficient outcome is one in which it is impossible to make any one individual better off without making at least one individual worse off, indicating an optimal allocation of resources.

Utility Function

A mathematical representation of how a consumer's preferences between different goods or services translate into levels of satisfaction or utility.