Ask Question
BusinessBusiness
4 November, 15:35

Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market. True or False?

+4
Answers (1)
  1. 4 November, 17:38
    0
    False. The characteristics of monopolistic competition are that there are many sellers, product differentiation and free entry and exit. The key difference between perfect competition and monopolistic is that in perfect competition firms are selling products that are identical so you can substitute one for another, while in monopolistic the products are similar but not quite the same. The demand curve for a perfectly competitive firm is horizontal since it has no market power and is a price taker, while a monopolistic firm is downward sloping with some kind of market power.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market. True or False? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When a manager clearly communicates important goals to her employees and indicates that she will hold them accountable for meeting those goals, she is engaged in initiating structure.
Answers (1)
A local Sports Authority ordered 50 pairs of tennis shoes from Nike Corporation. The shoes were priced at $85 for each pair with the following terms: 4/10, 2/30, n/60. The invoice was dated October 15.
Answers (1)
It costs a company $35,000 to produce 500 graphing calculators. The company's cost will be $35,080 if it produces an additional graphing calculator. If the company produces 501 graphing calculators then a.
Answers (1)
Sebastian company manufactures and sells sportswear products. sebastian uses activity-based costing to determine the cost of the customer return processing and the shipping activity.
Answers (1)
For the year, Wilson Manufacturing, Inc. increased its current assets by $62,000, decreased its current liabilities by $55,000, and decreased its fixed assets by $19,000. What is the investment cash flow for the year
Answers (1)
New Questions in Business
The Romer and Romer 2010 paper in the American Economic Review found that tax changes that are made to promote long-run growth or to reduce an inherited budget deficit tend to result in ___.
Answers (1)
According to income tax law, John could adjust the cost basis of his personal residence for which of the following items? A. Interest on the home loanB. Cost of adding a new garageC. DepreciationD. Cost of replacing the water heater
Answers (1)
A firm had merchandise inventory of $30,000 on January 1, 2019. During the year the firm had purchases of $54,000, freight in of $1,200, purchases returns and allowances of $2,700, and purchases discounts of $900.
Answers (1)
If the one-year discount factor is 0.8333, what is the discount rate (interest rate) per year?
Answers (1)
Summarized operations for Splish Brothers Inc. for the month of July are as follows. Revenues recognized: for cash $30,000; on account $71,480. Expenses incurred: for cash $26,120; on account $41,220. Indicate for Splish Brothers Inc.
Answers (2)
Home » Business » Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market. True or False?
Sign Up Forgot Password?