Economics 202 extra credit

What does monopolistic competition have in common with perfect competition?

A large number of firms and freedom of entry and exit

What is the difference between perfect competition and monopolistic competition?

In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.

perfect competition is characterized by all of the following EXCEPT?

considerable advertising by individual firms

One characteristic of monopolistic competition is that it has?

many firms producing a slightly differentiated product.

A market with a large number of sellers?

might be a monopolistically competitive or a perfectly competitive market

Which market structure is characterized by the following characteristics? 1. A large number of firms compete 2. Each firm produces a differentiated product. 3. Firms are free to enter and exit

monopolistic competition

The fact that firms in oligopoly are interdependent means that?

One firm's profit are affected by others firm's actions.

In monopolistic competition, a firm can set the price for it's product because of ?

Product differentiation

product differentiation allows a firm to compete with another firm on the basis of?

quality, price, and marketing.