The most significant difference between perfect competition and monopolistic competition is that
A) in a perfectly competitive market products are differentiated, while in a monopolistically competitive market products are homogeneous.
B) in a perfectly competitive market products are homogeneous, while in a monopolistically competitive market products are differentiated.
C) in a perfectly competitive market there is a large number of sellers, while in a monopolistically competitive market there is a small number of sellers.
D) in a perfectly competitive market there is a small number of sellers, while in a monopolistically competitive market there is a large number of sellers.
Answer: B
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Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both rose. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost b. fallen; decreasing cost c. increased; increasing cost d. increased; decreasing cost e. decreased; constant cost
Means tested government programs:
A. require recipients to undergo skills testing for benefits. B. define eligibility for benefits based on recipients' income. C. are as effective as unconditional cash transfers. D. are rarely used in the US.
To Schumpeter, the market process is called
A) dynamic externalities B) static business formation C) creative destruction D) all of these choices.
The term competencies refers to the set of skills, knowledge, and personal attributes possessed by the superior performer.