Question 4
A) Monopolistically competitive markets and perfectly competitive markets share some similarities but differ in a number of ways. One such difference between the two is that monopolistically competitive firms _.(1 point)

face some barriers to entry

face no barriers to entry

feature homogeneous products

feature differentiated products

Question 5
A) A health-care firm is looking to expand to international markets in an effort to increase profits. One potential location has only a few competing health-care providers, each holding a significant percentage of market share. Licensing requirements are high, but the firm may consider establishing a presence in the new location to enjoy _.(1 point)

the high prices that arise from monoplistic competition

the high prices that arise from perfect competition

the horizontal demand curves

the downward-sloping demand curves

Monopolistically competitive markets and perfectly competitive markets share some similarities but differ in a number of ways. One such difference between the two is that monopolistically competitive firms is:

A) is feature differentiated products

Licensing requirements are high, but the firm may consider establishing a presence in the new location to enjoys:

B) is the downward sloping demand curves

According to the questions, we can see that a monopolistic market and a competitive one are similar in some ways and also have their differences in which one of them is that they sell differentiated products.

When a market is said to be monopolistic, it means that it has no competition from other markets and it is the sole distributor of a particular product to the public.

Some of the disadvantages of this include::

Higher prices of goods
Fewer choices for the customer to choose from
The advertising is sometimes misleading, etc

Therefore, the correct answers are options A and B