Can I assume Only perfect competition refers to price takers. I thought Monopolistic also refers as price takers. ------------------------- Monopolistic competition differs from pure monopoly in that: A) barriers to entry are high under monopoly, but low under monopolistic competition. B) monopolistic competitors are price takers, monopolists are not. C) monopolistic competitors face downward sloping demand curves, monopolists do not. D) monopolists maximize profit; monopolistic competitors do not. Your answer: B was incorrect. The correct answer was A) barriers to entry are high under monopoly, but low under monopolistic competition. Monopolistic competition is characterized by the low barriers to enter its competitive markets. In contrast, a monopoly exists only where there are high barriers to market entry.
yes only perfect comp face horizontal demand curves