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.
B
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The more elastic the demand facing a firm,
A) the higher the value of the Lerner index. B) the lower the value of the Lerner index. C) the less monopoly power it has. D) the higher its profit.
Refer to the above figure. If a price floor of $5 was set
A) the quantity sold would be 80 units. B) the quantity sold would be 60 units. C) the quantity demanded would be 100 units. D) there would be a shortage of 20 units.
Union membership as a percentage of the labor force has been falling since the mid ______.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not a source of loanable funds?
A. The saving of households. B. Business saving. C. Commercial bank lending. D. Government budget deficits.