Economics 9708 · AS & A Level · 7.6

7.6 — practice question

The table presents some assumptions of perfect competition and monopolistic competition. Which combination is correct?

  • Aperfect competition: barriers to entry; monopolistic competition: small number of firms
  • Bperfect competition: differentiated products; monopolistic competition: large number of firms
  • Cperfect competition: freedom of entry and exit; monopolistic competition: barriers to entry
  • Dperfect competition: large number of firms; monopolistic competition: differentiated products

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