1. In monopolistic competition, the demand curve is ?
- Relatively inelastic
- Relatively elastic
- Perfectly inelastic
- Perfectly elastic
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2. Given the product differentiation, it should be clear that firms in monopolistic competition compete through ?
- Non-price competition
- Price competition
3. Allocative efficiency is being achieved
4. Which of these is NOT a characteristic of monopolistic competition
- Non-homogeneous products
- Good knowledge
- Many small buyers and sellers with a small market share
- Firms are price takers
- Low barriers to entry and exit
5. What is monopolistic competition?
- Monopolistic competition is a market structure with many firms producing a differentiated product where there are few barriers to entry and exit
- Monopolistic competition is a market structure with a single firm in the industry
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