All of the following characteristics apply to monopolistic competition EXCEPT
A) a large number of firms compete.
B) each firm produces the same identical product.
C) firms compete on product quality, price, and marketing.
D) there are no barriers to enter or exit the industry.
Question 2
The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. There is no external benefit nor external cost. The demand curve for chocolate is the same as the
A) marginal social cost curve of chocolate.
B) marginal social benefit curve of chocolate.
C) opportunity cost curve of chocolate.
D) marginal social benefit curve minus the marginal social cost curve of chocolate.
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