{"id":58942,"date":"2024-04-16T01:28:24","date_gmt":"2024-04-16T01:28:24","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58942"},"modified":"2024-04-16T01:28:24","modified_gmt":"2024-04-16T01:28:24","slug":"monopolistic-competition-differs-from-perfect-competition-primarily-because","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/monopolistic-competition-differs-from-perfect-competition-primarily-because\/","title":{"rendered":"Monopolistic competition differs from perfect competition primarily because"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;in perfect competition, firms can differentiate their products&#8221; option2=&#8221;in monopolistic competition, firms can differentiate their products&#8221; option3=&#8221;in monopolistic competition, there are relatively few firms&#8221; option4=&#8221;in perfect competition, there are no barriers to entry&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. in monopolistic competition, firms can differentiate their products.<\/strong><\/p>\n<p>Monopolistic competition is a market structure in which there are many firms selling similar but differentiated products. This means that each firm has some control over its price, but it also faces competition from other firms selling similar products.<\/p>\n<p>In perfect competition, there are many firms selling identical products. This means that each firm has no control over its price, and it must accept the market price.<\/p>\n<p>The key difference between monopolistic competition and perfect competition is that firms in monopolistic competition can differentiate their products. This means that they can create products that are perceived by consumers to be different from the products of other firms. This allows firms in monopolistic competition to charge a price above the marginal cost of production.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>In perfect competition, firms cannot differentiate their products. This is because all firms produce identical products.<\/li>\n<li>In monopolistic competition, there are relatively many firms. This is in contrast to perfect competition, in which there are many firms.<\/li>\n<li>In perfect competition, there are no barriers to entry. This means that it is easy for new firms to enter the market.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;in perfect competition, firms can differentiate their products&#8221; option2=&#8221;in monopolistic competition, firms can differentiate their products&#8221; option3=&#8221;in monopolistic competition, there are relatively few firms&#8221; option4=&#8221;in perfect competition, there are no barriers to entry&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-58942","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Monopolistic competition differs from perfect competition primarily because<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/monopolistic-competition-differs-from-perfect-competition-primarily-because\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monopolistic competition differs from perfect competition primarily because\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;in perfect competition, firms can differentiate their products&#8221; option2=&#8221;in monopolistic competition, firms can differentiate their products&#8221; option3=&#8221;in monopolistic competition, there are relatively few firms&#8221; option4=&#8221;in perfect competition, there are no barriers to entry&#8221; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/monopolistic-competition-differs-from-perfect-competition-primarily-because\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:28:24+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Monopolistic competition differs from perfect competition primarily because","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/monopolistic-competition-differs-from-perfect-competition-primarily-because\/","og_locale":"en_US","og_type":"article","og_title":"Monopolistic competition differs from perfect competition primarily because","og_description":"[amp_mcq option1=&#8221;in perfect competition, firms can differentiate their products&#8221; 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