The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-Monopolistic competition is similar to perfect competition in that:
A)there are only a few firms in the market.
B)the entry into and exit from the market is easy.
C)there are significant barriers to entry in the market.
D)each firm sells a homogeneous product.
E)each firm differentiates its product through advertising.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-Monopolistic competition is similar to perfect competition in that:
A)there are only a few firms in the market. 
B)the entry into and exit from the market is easy. 
C)there are significant barriers to entry in the market. 
D)each firm sells a homogeneous product. 
E)each firm differentiates its product through advertising.

Quizplus · Accepted Answer

Monopolistic competition is similar to perfect competition in that entry into and exit from the market is easy, allowing new firms to enter the market if they see an opportunity for profit and existing firms to leave if they're unable to compete effectively.

The Figure Given Below Shows the Cost and Revenue Curves