When comparing perfect competition and monopolistic competition, we find that
A) firms in monopolistic competition produce identical products just as do firms in perfect competition.
B) firms in monopolistic competition face barriers to entry, unlike firms in perfect competition.
C) advertising plays a large role in monopolistic competition, unlike in perfect competition.
D) firms in monopolistic competition are price takers just as is the case for firms in perfect competition.
C
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Which of the following stresses the inability of the government to improve short-run market outcomes?
A. Monetary policy B. New classical economics C. Supply-side policy D. Fiscal policy
Firms in an oligopoly market tend to be ____ and have ____ barriers to entry.
a. large (relative to the total market); high.
b. large (relative to the total market); low.
c. small (relative to the total market); high.
d. small (relative to the total market); low