Which is the main difference between perfect competition and monopolistic competition?
(A) In perfect competition, the prices are set by the government.
(B) In monopolistic competition, there are fewer sellers and more buyers.
(C) In monopolistic competition, sellers can profit from the differences between their products and other products.
(D) In perfect competition, the buyer is free to buy from any seller he or she chooses.
Ans: (C) In monopolistic competition, sellers can profit from the differences between their products and other products.
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A) 80 B) 25 C) 20 D) 5 E) 320
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A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
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