Day: May 8, 2023

In which way does monopolistic competition differ from perfect competition?

Select ONE answer:

1. Average revenue exceeds average cost in long-run equilibrium.
2. Barriers exist to the entry of new firms.
3. Marginal revenue exceeds marginal cost in long-run equilibrium.
4. Products are differentiated.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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