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Monopolistic competition

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The monopolist and the perfect competitor differ in that:
they face different demand curves
the monopolist does not always produce at an output at which MC=MR
the monopolist is always a large firm
the monopolist is more efficient

The monopolist is a(n):
imperfect competitor and has a horizontal demand curve
imperfect competitor and has a downward sloping demand curve
perfect competitor and has a horizontal demand curve
perfect competitor and has a downward sloping demand curve

Monopolistic competition differs from perfect completion only with the respect to:
the number of firms in the industry
product differentiation
barriers to entry
economics of scale

In the long run in monopolistic competition:
most firms are making a profit
the absence of entry barriers ensures that there are no profits
economics of scale ensure that there are no profits
most firms are losing money

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Monopolistic competition is briefly compared to perfect completion.

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Monopolistic competition
The monopolist and the perfect competitor differ in that:
they face different demand curves
(Perfect competitor have horizontal ...

Purchase this Solution
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