Author Question: Which of the following is NOT true of monopolistic competition? A) Firms produce a good that is a ... (Read 49 times)

Alainaaa8 · **on:** Jun 29, 2018

Which of the following is NOT true of monopolistic competition?

A) Firms produce a good that is a perfect substitute for their competitors' goods.
B) There is free entry and exit.
C) There are a large number of firms.
D) Firms can compete on price and quality.

Question 2

The costs incurred even when no output is produced are called

A) fixed costs.
B) variable costs.
C) external costs.
D) marginal costs.