Monopolistic competitive firms and perfectly competitive firms are similar in that both
A)set price equal to marginal cost.
B)face a horizontal demand curve.
C)face no barriers to entry or exit.
D)produce a homogeneous product.
E)all of the above

Question

Quizplus · Accepted Answer

Monopolistic competitive firms and perfectly competitive firms both face no barriers to entry or exit, allowing new firms to enter the market freely and existing firms to exit without significant obstacles.

Monopolistic Competitive Firms and Perfectly Competitive Firms Are Similar in That